Weekly Market Outlook for Bitcoin

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By Ben Myers

Bit Coin - BTCThe Bitcoin foundation in Ukraine has quashed rumours that the regulatory authorities in Ukraine have taken steps to ban the use of the crypto-currency. The statement comes on the back of statements from regulatory authorities who had earlier stated that the digital currency has no real value and retains inherent volatility and a high risk factor. The Bitcoin foundation have countered this argument stating that the statements from the National Bank of Ukraine does not mean a ban on the use of the crypto-currency but only means that the Ukrainian hyrvnia is the only official form of payment.

The BTC/USD witnessed some semblance of buying over the last few trading session but has given up all of its gains which is cause for concern for traders and investors as it points towards the fact that bears are in total control. The BTC/USD continues to form lower highs and lower lows which is a huge negative for the digital currency. In the early morning session, the BTC/USD is trading flat with a positive bias.

The BTC/USD is seeing some support at the psychological level of $300 and faces resistance on the upside near the $336 level. The crypto-currency currently trades below all important daily moving averages which is a huge negative. The stochastic oscillator for the BTC/USD is showing first signs of a bearish reversal which is indicative of the strong selling momentum present at current levels. The relative strength index has given a sell signal which is a bearish sign. Traders and investors are also concerned about flagging volumes in the market-place at the current moment.

Actionable Insight:

Short BTC/USD if it moves below $304 for an intermediate target at $280 for with a strict stop loss above $326

Long BTC/USD if it moves above $336 for an intermediate target at $357 with a strict stop loss below $321


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