Andreas Antonopoulos, who is widely considered to be the global authority for talking and educating people about Bitcoin, believed that this just a case of authorities not being able to understand what Bitcoin really is and subsequently trying to “pigeon-hole” the digital currency by imposing absurd taxes. Additionally, he mentioned that traditional banking interests have overpowered the new technology.
When looking at the chart, the BTC/USD currently is unable to sustain itself above $373. It was higher for most of yesterday’s trading day but then forfeited all of its gains during this morning’s session. The BTC/USD has been trading flat and has a negative bias, which shows that every rally is being sold into by bears.
The stochastic oscillator for the BTC/USD, which had previously given a buy signal is now starting to display its first sign of reversing, due to a clear lack of follow up buying interest at current levels. Additionally, its relative strength index is indicating that a reversal is due. Furthermore, the BTC/USD still continues to trade below its daily moving average, which is undoubtedly a bearish indicator. Lastly, resistance for the digital currency on the upside lingers near the $400 psychological level.
Actionable Insight:
Short the BTC/USD if it moves below $368 for an intermediate target at $340, with a stop-loss above $375.
Long the BTC/USD if it moves above $383 for an intermediate target of $412, with a stop-loss below $370.