Is Bitcoin Set To Hit Canada?


Over the past couple of months, there were ramblings in the financial markets as to how Bitcoin has lost steam. Many investors avoided Bitcoin due to its high-volatility issues that it still must overcome. Additionally, improvement in world-equity markets caused the crypto-currency to plummet. However, the Bank of Canada is currently considering the pros and cons of the Bitcoin. At the current moment, it considers Bitcoin as just a financial asset, but many industry analysts believe that once Bitcoin is able to escape the negative press, it should easily become more acceptable.

The BTC/USD was unable to move above its resistance as its 100-day moving-average is at $417. It recently experienced some intense selling pressure, which caused the crypto-currency to plummet well below its important support zone of $375. In today’s trading session, the BTC/USD moved above its resistance zone but was unable to sustain itself, which is negative for the digital currency going forward.

The sell-off in the BTC/USD over the past couple of days was due to heavy volumes, which is a bearish indicator, and suggests that the bears are in total control at the current moment. The stochastic oscillator for the BTC/USD is providing a clear sell signal, which is indicative of a shift in momentum towards the sell side. Lastly, the relative strength index is additionally providing a sell signal, which analysts find troubling.

Actionable Insight:

Short the BTC/USD if it moves below $373 for an intermediate target at $321, with a strict stop-loss above $390

Long the BTC/USD if it moves above $400 for an intermediate target at $451, with a strict stop-loss below $375.

 

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