The big news in the bitcoin universe on Wednesday is that of MIT students Jeremy Rubin and Daniel Elitzer teaming up with HFT trader (and MIT alumni) Alexander Morcos to unload $500,000 worth of bitcoin at the university. Each student will receive $100 worth of bitcoin, with the goal being to encourage creativity and invention as far as use and application of cryptocurrencies is concerned. While unlikely to have a direct effect on the value of bitcoin in the short term, such action could lay seeds for longer term strength, offering up something of a bullish fundamental bias; at very least, it keeps bitcoin in the public eye.
As far as the charts are concerned, the picture is not so clear. The somewhat subdued price action seen throughout last week now looks to have been completely overturned by this week’s volatility, meaning today’s trade plan is all about key levels.
A quick look at recent action shows the BTCUSD declining in a staggered fashion throughout the first half of this week, characterized by a sharp decline, followed by a medium term intraday range. Having found support at 413.033 however, the trend reversed. A shallow gain fed into a Tuesday range, and Wednesday’s action sees the pair trading between in term support at 429.159 and in term resistance at 441.432. These are now the levels to keep an eye on. Look for a break of in term resistance to compound the bullish fundamental bias and validate an initial upside target at 455.931. Beyond that, look to April 24 support at 471.552.
Conversely, look for a break below in term support to offer up a bearish intraday bias, with a close below 429.159 validating an initial downside target of Wednesday support at 424.328. Beyond that, look for further downside to break the BTCUSD towards weekly lows at 413.033.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com