- BItcoin volatile over the weekend
- 231.19 – this level will serve as in term resistance today
- 229.27 will serve as in term support
Action over the weekend in the bitcoin price has been pretty interesting, and it looks as though the week volatility we saw throughout the majority of last weak has abated and we have finally got some decent movement. With this said, we are still trading within a tight range, and the only real strategy available to us today according to our predefined parameters is our breakout strategy. Now, as we head into a fresh week of trading, what are the levels we are keeping an eye on the bitcoin price, and how can we get in to either a long or short position on any volatility? Take a quick look the chart.
As the chart shows, we are currently trading just shy of 231.19 – and this level will serve as in term resistance as we head into the European morning session. To the downside, 229.27 will serve as in term support medium-term.
If we get a break above 231.19, it would put us long towards an initial upside target of 232.5 – a tight trade that leaves us not much room for a stop loss, so a stop somewhere around 230.40 is necessary to maintain a positive risk reward profile.
Looking the other way, if we get a run down towards 229.27, we will look for a break below in term support to put us short towards an initial downside target of 227.99. Again, not much room for a stop loss, but 230 flat should do the job. If we can break below 227.99, it could suggest further downside momentum, and we will look to enter a secondary short trade towards 225 flat, with a stop somewhere around 228.80 ensuring that we are taken out of the trade in the event of a bias reversal. That’s how we can get a bit more action this week than we did last.
Charts courtesy of Trading View
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.”
231.19 – this level will serve as in term resistance today
229.27 will serve as in term support Action over the weekend in the bitcoin price has been pretty interesting, and it looks as though the week volatility we saw throughout the majority of last weak has abated and we have finally got some decent movement. With this said, we are still trading within a tight range, and the […]