Following the long awaited breakout in BTC/USD, there was a heavy bout of profit taking keeping the price of the digital currency around the $670 level. The bullish breakout began around the $610 level with BTC/USD rising more than 7% top $658 as a flurry of positive fundamental digital currency news and a weakened US Dollar inspired a risk on sentiment.
Having broken the $650 barrier, investors looked to lock in profits, ensuring the price hovered around the $640 mark (currently at time of writing the price is $638.96). The target now stays at $670 and it is recommended that long positions should be closed around the $680 resistance mark as shown on the chart.
When looking at the current price, we would suggest that traders refrain from buying now, simply because the lack of attraction in the profit to loss ratio. When looking at the chart, we would suggest entry levels between the 610 – 620 levels. Stop losses should be placed at the $600 key support level. Short positions can be built on any move to around the $670 level with a stop loss set at the $680 mark with a take profit target of $630.
Those medium to long term investors should consider establishing long positions now and on every fall to the around the $550 mark.
Boosting the long term viability of the digital currency has been a raft of positive news beginning with computer hardware and software retailer Newegg announcing that it will begin accepting payment in Bitcoin, making use of the popular Bit Pay payment processor who just launched a BitAuth aimed at facilitating a decentralized authentication system.
Outside of the US, digital currency retailer Expresscoin, made Bitcoin acceptable in its Canadian shops along with host of other digital currencies including Litecoin and Blackcoin, adding further long term viability to the future of digital currency and digital currency trading.