Bitcoin Outlook- July 13, 2014

The past week was marked by BTC/USD trading in a narrow range of 25 points between resistance R1 and support S1. During the period, the pair touched a high of 642.57 and a low of 607.90 but looks set to end the week on a flattish note. Each Bitcoin is currently valued at $629.10.

The week started with the price falling to 615-level post the failure of the bulls to breach 638 on the upside and giving way to a perfect lower-top lower-bottom structure. After taking support from the 615-level, BTC/USD bounced to touch 630 but the upward momentum was short-lived as the pair slipped into consolidation mode once again. The sideways movement ended with the price cracking below the crucial support S1 in the latter part of the week, but this was soon followed by an up-thrust which took the price near the major supply level of 638. The price has since then corrected and is currently stable at 629.10. Now that the counter has established that it is no mood to move beyond R1 or S1, traders must continue to range-trade the pair by practicing strict risk disciplines and following stop-losses.

Hoping to cash in on the rising popularity of the digital currencies, preferably Bitcoin, election candidates in Missouri and Sweden are accepting Bitcoin-only donations to fund their campaigns. Mathias Sundin from Sweden and Dan Elder from Missouri have in a first-of-its-kind initiative vowed to fund their campaigns with only Bitcoin. In another development, to curb the illegal and fraudulent use of the digital currencies, the French Ministry for the Economy and Finance has outlined the regulations for the users of cryptocurrencies. These measures are expected to be inculcated into the financial system by year-end and will be followed by individuals and institutions alike.

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Ben Myers

After graduating with a degree in Finance and Accounting, Ben has had a long and distinguished career in the world of global finance and investment. After stints with multi-national institutions including HSBC and Bank of Ireland, Ben ran his own independent investment advice firm in the UK before becoming chief analyst at YesOption and remains a keen Forex and Binary Options trader.

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