Amidst New Partnerships, Bitcoin Still Bearish
Ben Myers | Oct 29, 2014 10:29AM ET
Kraken today announced a partnership with PayCash, allowing the Bitcoin exchange to provide both U.S. Dollar and British Pound funding to their clients. Trading between the Bitcoin and USD has already been available on Kraken, but USD deposits have been disabled since February 2014. Kraken is promising a more reliable and safer exchange, as PayCash has the needed experience, oversight and infrastructure to provide its users with strong banking relationships.
'Impossible' To Ban
An interview with Evgeny Volovik, the head of the Information and Communication Department at Russia’s Federal Financial Monitoring Service Resource Centre, reveals that he believes that it is impossible to technically ban decentralized crypto-currencies due to the nature of the internet. Back in August he remarked that Bitcoin is not a monetary surrogate and the Federal Financial Monitoring Service has evidence that terrorists prefer fiat over crypto-currencies. He added that Bitcoin will not have a future on the global level, but will become useful for developing new concepts, algorithms, software, etc.
The city of Launceston, in Australia, has plans to build the ‘world’s largest’ local bitcoin-based economy, with support from local businesses and government. The plain is aimed to cover various levels of the business supply chain. Also, several tourism and real-estate projects are planned in an attempt to attract tourists to the area.
Today the price-action of Bitcoin broke out of its weekly trading range. For the previous five days or so, the price has been trading sideways, fluctuating between $358 and $348. The price is currently testing the second daily support level at $346.11 and if this fails to hold, the next support will be found at approximately $342.12. In the event of an upward bounce, resistance will be located at $351.53.
Bearish Momentum
At the 4-hour timeframe, the price action closed below the base line this morning, indicating bearish momentum. The price action remains below the red Ichimoku cloud, suggesting that the downward trend will continue. If the price moves back above the base line, this will signal bullish momentum and we may see the price tend towards the lower part of the Ichimoku cloud at $359-$355. However, the base line has moved above the conversion line, indicating bearish momentum, so it is more likely that further declines will materialize.
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At the hourly timeframe, the price action is very bearish. Earlier this morning, the price closed below the base line and the base line moved above the conversion line. Also, the price action moved below the Ichimoku cloud, indicating a downward trend for today. The formation of a red cloud in the periods ahead also act as confirmation of the formation of a downward trend. The Ichimoku cloud will act as resistance going forward, at the $354-$350 level.
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