Bitcoin On The Cusp, But In Which Direction?
Ben Myers | Jul 24, 2014 08:16AM ET
Although it has become a stock saying of late, (Bitcoin) continues to trade in a range. Thankfully however, the range has gotten very narrow and the charts indicate the digital currency is on the cusp of a breakout. As can be seen from the BTC/USD hourly chart above, the pair—with a current value of $619—has made successive lower tops without threatening the support (at S1).
As the range has gotten narrower, Bitcoin looks set to free itself from the consolidation mode and traders must be ready to capture any impending and expected significant price action. The digital currency continues to respect S1 and hence, going long on the counter is advised with a stop-loss (closing basis) placed just below S1 for a target of $630. Short positions should be considered only after the pair has closed and remained below $610 for a target of $600 with a stop-loss (closing basis) placed above the $618.
Looking at possible triggers, there is good news for European Bitcoin consumers; ZipZap, a leading global cash transaction network, announced that it would now introduce its cash-to-Bitcoin services across the 34 European countries. Consumers can now buy the digital currency directly from the platform and use its various other payment services.
In an effort to save Bitcoin from being “narrowed down to a hobbyist niche” owing to the harmful policies of the US government, Perianne Boring, the CEO of Boring & Company, LLC, a financial services technology consulting firm, will helm the Chamber of Digital Commerce (CDC) to advocate for Bitcoin regulation in Washington, D.C. Taking a cue from the New York’s Bitcoin regulations, Boring has said that “such onerous regulations will really hurt the small businesses” and hence, better representation is required in the government.
In other news, Bitcoin Opportunity Corp, headed by Barry Silbert, has granted $250,000 in funds to the Mexican Bitcoin-based exchange Volabit, an amount that would help establish Volabit in the digital landscape. Investors will be looking at the positive fundamentals to spark some price action and with BTC/USD on the cusp of a break-out, don’t be surprised to see a move made sooner rather than later.
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