By: Ben Myers
BTC/USD continues to remain in a strong downtrend post breaking the psychological support zone at $400. The digital currency was unable to sustain at higher levels and closed near the lows of the day in yesterday’s trading session. The BTC/USD currently trades below its important daily moving averages indicative of the overall bearish sentiment for the currency.
The next zone of support for the BTC/USD comes near $373 level which is the lower end of the Bollinger band and a close below this level might see further selling pressure. The momentum indicator is showing no signs of a reversal indicative of the fact that the bears currently have an upper hand. The relative strength index continues to trade in the bearish territory but is showing no signs of a reversal which is a cause of concern.
There was some positive news for Bitcoin on the back of creation of Coin Centre. It is an organisation which is backed by renowned venture capitalist and has a clear agenda of helping in the adoption of Bitcoin as a valid form of currency. Initially it would start with a budget of $1 million annually. Coin Centre also believes that it would want to work together with governments to help them understand the various intricacies surrounding the crypto-currency.
There was more positive news for Bitcoin when Square announced that it was working on registers which would accept bitcoins as a valid form of payment which is being seen as a huge positive for the digital currency. Square believes that it would want to incorporate Bitcoin as it wants the users of Square never to lose out on sale and accept all forms of a payment.
Actionable Insight:
Short BTC/USD if it closes below $373 with an intermediate target at $320
Long BTC/USD only if closes above $400 for an intermediate target at $424
