Bitcoin traders finally got the price breakout they have been waiting for, as the USMS auction was considered a success and drove the price up nearly 7% over the course of yesterday’s trading to reach the 640 level having been stuck in the $600 – 610 range for a considerable amount of time.
It appears that after the breakout, only long term positions should be taken into consideration and those with short term positions should be looking to lock in profits at around the $670 mark. Following the long awaited breakout, it is advisable that medium term investors in Bitcoins hold their positions, whilst fresh long term positions should be made on dips with stop losses set around the $600 mark and a price target view for $670.
Traders with an aggressive persuasion can look to build short positions around the $670-675 mark with a target of $630 and a major stop loss at around the $680 level that was last reached at the start of June. As seen from the chart, the $680 level provides a strong resistance mark and any close above that level provides a strong bullish signal and should spark some frantic short covering pushing prices towards the $700 mark.
From a fundamental point of view there are many developments which need to be monitored. The Australian Tax Office (ATO) announced that it has postponed its ruling on treating Bitcoin for this year’s tax submission period despite pledging a ruling since Feb. Leading financial services provider; Mastercard filed a patent to include Bitcoin in its global shopping cart. This should pave the way for more ecommerce sites and financial services companies accepting bitcoin which should only add long term value to the digital currency.
Overall, the YesOption team of analysts look to further steep prices in the immediate future now the breakout has happened, and with positive developments happening behind the scenes, prices are expected to continue to rise.