One of the key factors that have kept investors away from Bitcoin trading has been its intense volatility. Flagging volumes indicate that investors both in the U.S. and China, two countries that constitute 90% of the trading volumes for the digital currency, are not investing in Bitcoin at the current moment. Many industry experts however, believe it has stabilized somewhat and investors with a long-term outlook should start accumulating Bitcoins and ultimately generate substantial profit over a period of time.
The BTC/USD is continuing to trade in a very narrow range, with resistance remaining near $389 on the upside and support at $361 on the downside. Analysts believe only a small rise or fall from the aforementioned levels will indicate which direction the crypto-currency is heading. Some experts are worried over the seemingly non-existent volumes, pointing towards the fact that there is lack of investor participation at current levels.
The stochastic oscillator for the BTC/USD is providing a sell signal and is additionally forming a lower-high, which is undoubtedly a bearish sign and points towards an impending correction. Furthermore, its relative strength index is giving a sell signal, which is considered to be a bearish indicator for the near-term. Lastly, it is imperative to state that the BTC/USD is still trading below its important daily moving average.
Short the BTC/USD if it moves below $361 for an intermediate target at $321, with a strict stop-loss above $377
Long the BTC/USD if it moves above $389 for an intermediate target at $412, with a strict stop-loss below $379.