What Does the Future Hold for Bitcoin?

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336
Bitcoins Coins
Bitcoins Coins
Bitcoins Coins

The intense volatility witnessed in Bitcoin prices over the past year made the crypto-currency one of the worst performing asset classes in 2014, with Bitcoin losing more than 66 percent of its value. There have been green shoots for the digital currency, as 2014 saw Bitcoin being adopted as a valid form of payment by many retailers and tech giants like Microsoft and Dell allowing users to transact using Bitcoins on their respective online platforms.

Many industry experts believe, green shoots apart, 2015 can turn out to be another bleak year for the digital currency. Many industry experts believe that the advantages of using Bitcoins are lost on users and its association with criminal activities and volatility have kept many such new users away from the marketplace. The Bitcoin industry hasn’t been able to provide compelling reasons for investors and users to adopt Bitcoin over traditional payment systems which are being seen as negative.

In some other news, it was reported that a new study looking at the economic impact of Bitcoins on the Brazilian economy by the Brazilian senate has said that there are no requirements for regulating the digital currency. Many believe this decision would allow tech companies involved with Bitcoins to shift to Brazil as it would provide to them a better breeding ground.

Though, the Brazilian tax authorities, just like its US counter-part have gone ahead and labelled Bitcoins as just another financial asset class which is being seen as negative. The report concluded by saying that the Senate would keep a close eye on the growth of the digital currency and might introduce regulations as and when it thinks it becomes imperative, as an unregulated digital currency could prove to be disastrous for the economy.

Technical Analysis

BTCUSD continues to trade in a narrow range after falling all the way from $356 odd levels till $304 last week. Moving ahead traders expect Bitcoin to rebound and go till $330, $340 levels. BTCUSD is trading tad below its 50 SMA of $325.15 which is expected to be crossed in today’s trading session.

Actionable Insight

Buy BTCUSD above $324.5 for target of $329, $334 with stop-loss of $321.5

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