Payward Inc, one of the leading Bitcoin exchanges stated that it will assist the recently collapsed Mt. Gox, on investigating the loss of hundreds of thousands of Bitcoins and manage the process of paying back its creditors. This arrangement was approved by a Tokyo bankruptcy court.
It is important to state that Mt. Gox was the biggest Bitcoin exchange in the world and unsurprisingly sent tremors around the Bitcoin industry once it stated that it needed to file for bankruptcy. Many industry analysts believe that the meltdown at Mt. Gox drove away myriads of potential investors and greatly contributed to its high-risk reputation.
Post Mt. Gox’s bankruptcy, Bitcoin prices plunged to multi-year lows. However, a few leading experts feel that this particular announcement from Payward can slowly start to restore Bitcoin’s reputation. Of course it is able to retrieve the Bitcoins it would be a tremendous win for those who have shown faith in the development of the crypto-currency world.
In other news, it was revealed that U.S. Senator Tom Coburn called the crypto-currency illegal and supports a clampdown on the distribution of such currency, as it is currently being used to procure illegal drugs and contrabands. This development is of course being considered tremendously negative for the Bitcoin industry, which is currently trying to educate lawmakers about the digital currency and its uses.
Technical Analysis
The BTC/USD was unable to sustain at higher levels and subsequently started falling again. It has support at $358 and $366 on the downside, with a $375 and $380 resistance on the upside. However, as of now, there is lot of indecisiveness amongst traders.
Actionable Insight
Sell the BTC/USD below $369.5 for target of $366 and $358.
