- Bitcoin price breaks to the downside on Monday
- 220.98 – in term support
- 226 – in term resistance
Earlier this morning we published our twice-daily bitcoin price watch piece highlighting the action we had seen in bitcoin over the weekend, and suggesting a few of the key levels that we would be looking at as we headed into Monday’s European session. Now action has matured throughout the day, we have seen quite a lot of volatility, and so a fresh set of key levels have come to the fore. With this said, what are the levels that we are now watching, and how will we be looking to enter into any volatility in the bitcoin price overnight? Take a quick look at the chart.
As the chart shows, shortly before 3 o’clock GMT, the bitcoin price broke what we had slated as in term support and put us short towards our near-term target. Our target was hit pretty much straight away, and we are now trading between in term support at 220.98 (a level that served as a floor mid-afternoon) and in term resistance at 226 flat. These are the levels to watch as we head into Monday evening.
We are currently trading mid-range, so we don’t have an initial bias, but we will look for a run up towards 226 flat and a break above this level (with an intraday close on the candlestick chart) to validate a bullish bias, and an initial upside target of 231.21. A stop loss somewhere around 223 will maintain a positive risk reward ratio, while leaving enough room for a downside spike in the event that we return to trade mid-range short-term.
If the bearish momentum that we saw this afternoon returns, and we get a run down towards (and a break of) 220.98 – in term support – it would put us short towards a medium-term downside target of 215 flat. Once again, a stop loss around 223 flat will take us out of the trade in the event of a bias reversal.
Charts Courtesy of Trading View
- Penn State Professor predicts Bitcoin will lose its shine
- Says altcoins will have more power over the digital currency sector
Against all the critical expectations, Bitcoin is growing — and is promising to revolutionize some of the biggest, well-settled banking infrastructures with its indisputably advanced blockchain technology. But according to an accomplished IT scholar, there is still a scope of improvement in the digital currency.
John Carroll, a Distinguished Professor of Information Sciences and Technology at Penn State University, believes that Bitcoin will lose its shine in future, if there be any additional improvements in other alternative digital currencies, or altcoins. His comments are derived from a scenario where Bitcoin will be the victim of some “pioneer’s penalty” if it fails to add anything more to the table. In simple words, who will use an acoustic string telephone when he could access a mobile phone.
The arrival of some feature-rich digital currencies, on the other hand, does support Carroll’s futuristic theories. At one point, we have Ripple — a payment protocol and a value-carrying token — that is known to be harnessing the most from the Bitcoin technology. At another, we have Dash (formerly known as Darkcoin), which is leaving no-stone-unturned in bringing out a consensus-based decentralized governance model for the entire cryptocurrency community.
Professor Carroll secretly refers these innovative altcoins to surpass, or even replace, the mightier Bitcoin. At first, the formers have the courage to experiment endlessly, given the small size of their communities. And as it seems, they are in the right direction to make a name for themselves. Bitcoin community, on the other hand, is still fighting over their chief developer’s decision to increase the block size. The lack of consensus and governance is accurately visible. It could certainly impact the currency’s growth in future, if not addressed properly.
“Bitcoin didn’t do everything right,” Carroll further states. “I don’t know whether becoming the currency of choice for murder-for-hire and drug deals helped them much. But it’s often the case that those early pioneers make missteps that are corrected by succeeding initiatives, which may be what will happen here.”
220.98 – in term support
226 – in term resistance Earlier this morning we published our twice-daily bitcoin price watch piece highlighting the action we had seen in bitcoin over the weekend, and suggesting a few of the key levels that we would be looking at as we headed into Monday’s European session. Now action has matured throughout the day, we have seen quite a lot […]