The hourly chart of BTC/USD is clearly telling us about how to approach Bitcoin post the USMS auction of approximately 30,000 Bitcoins. Though the digital currency has had a sharp spike in its price, trading and investing opportunities can still be found upon careful investigation of the chart. As can be seen from the chart, the successful Bitcoin auction has brought out the positive sentiments which were long suppressed, and taken the price beyond 650 levels.
Technically, the price is trapped in a 20 point range from 638-658 (marked as the rectangular box in the chart) and has witnessed three significant price reversals marked as 1, 2 and 3. This price action establishes 658 as a near-term resistance level and 638 as a near-term support. Traders who are long on this counter may consider booking partial profits near 658 and hold the rest with a stop-loss placed at 638. A significant close below the support level may drag the price to around 620 while a breakout on the upside will push the price to the major resistance level of 680 and all long positions must be closed then.
Traders can take advantage of the range by building positions close to the ends. Long positions can be made near 640 for a target of 650 by placing a stop-loss at 638. Similarly, short positions can be built near 655 for a target of 645 by placing a stop-loss at 658.
In a statement that firmly puts Bitcoin in a strong position, online travel booking giant Expedia has announced that its move to accept Bitcoins in payments is a huge success and the total Bitcoin sales have already exceeded the estimates. After various banks joining the Bitcoin bandwagon, now Bank of Russia has softened its stand on digital currencies and is gathering information about this virtual phenomenon.