Bitcoin started the trading today on a soft note. The virtual currency closed in red on Friday. BTC/USD pair closed at $615.11 down 0.88% at Coindesk BPI exchange. It opened flat at same level on Friday 11, 2014. It made a low of $613.87 in early morning trade. It recovered from day’s low and was trading at the high point of the day around $ 617 at 10.30 UTC.
It can be seen from the BTC/USD chart; the price of the pair is now consolidating and has managed to find support at day’s low. It has made a lower-top lower-bottom structure. If it continues with it with no signs of reversal, it can touch the level of $600 in the next few days. The level can act as a support for the digital currency.
BTC/USD pair should not be bought out at current levels. Any rise towards the higher points above $625 will provide the traders with an opportunity to short the virtual currency. They can keep a stop loss at $635 for a target of $600 in coming days. Around the levels of $600 all the short positions should be closed, as it can lead to a short covering. Traders can enter in a contra trade at the levels of $600 for a target of $615 with a strict stop loss placed at $595.
If the virtual currency corrects against the dollar, it will be a buying opportunity for long-term investors. They can start allocating part of funds in BTC/USD pair if it touches the level of $600. The pair has got fundamental support at levels around $540-550.
In the latest news, BitPay has come up with an open-source wallet service known as Copay. It will solve the growing concerns associated with the use of virtual currency. It will provide more security against the threats with a private key.
July 11, 2014 at 06:26AM
Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card
