Bitcoin: Uptrend Looms
Ben Myers | Oct 21, 2014 10:43AM ET
(Bitcoin) reached a low of $376 on the Bitstamp exchange yesterday, but has since been trading sideways. Bulls have been more dominating today, with a 1.13% price rise over today’s open. The current price stands at $385.51. The price action should tend towards the weekly pivot point at $390.80. Whereas if the price action moves in the downward direction, the daily support level at $374.72 should limit any losses.
Bitcoin Minus The Internet
Finnish technology co-operative Koodilehto has aimed to improve the accessibility and adoption of Bitcoin, offering an alternative that does not require an internet connection. They note that TV networks are reliable and have been designed to work in challenging conditions around the world. The company is looking to offer a Bitcoin payment confirmation system and exchange data which anyone can receive through a standard digital TV and their custom software. In the future, the service could be used to create Bitcoin counterparts for cash payment terminals, which can be used in everything from cash registers to vending machines.
Bitnet is a new company that aims to entice the largest merchants to accept Bitcoin payments. Bitnet has raised $14.5 million to compete with established Bitcoin companies such as Coinbase and Bitpay. The executives at Bitnet are former Visa employees and saw Bitcoin as a way to reduce direct costs and many costs of using credit cards for payment. Bitnet defines itself as an enterprise bitcoin payments company and aims to bring a complete bitcoin payments system to its customers.
The chart below shows the hourly price action of Bitcoin. Currently, the price action is in the Ichimoku cloud and buy or sell orders should wait until the price action moves out of the cloud. The conversion live has moved above the base line indicating bullish momentum, but this signal is weaker than usual, as the price action is not above the cloud. The relative strength index is above 50, at 53.66, indicating that the upward momentum should continue.
The 4-hour chart below paints a similar picture. The price action is in the Ichimoku cloud, signalling uncertainty with regards to the current trend. If the price closes above the base line, this will be confirmation of bullish momentum and could lead to the price action being lifted out of the cloud in the upward direction. The relative strength index is also slightly bullish at the 4-hour timeframe. Again, any buy or sell orders should wait until the price action closes above or below the Ichimoku cloud.
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