Bitcoin Price Consolidates; Volatility Out Of Asia?

In this morning’s bitcoin price analysis, we noted that we would be bringing our intrarange strategy in to play for today’s session. We widened out predefined range and planned to go long at support and short at resistance, with a stop loss just the other side of our entry. Action has now matured throughout the European afternoon, and we are heading into a fresh Asian session shortly. In light of this, let’s take a look at how our strategy fared, and set up our positions n anticipation of any volatility tonight. As always, check out the chart to get an idea od what we are watching.

As you can see form the chart, action today has been relatively flat. We remained well within our predefined range, but failed to reach either in term support or resistance, meaning we aren’t in (and haven’t got into) any trades so far today. With this in mind, we are tightening up our range tonight. This doesn’t mean we cant use our intrarange, just that we will have to keep our risk a little tighter if we take a position. In term support sits at 356.20, while in term resistance comes in at 363.63.

We will look for a correction from resistance to put us short towards in term support, or a close above resistance to validate an upside entry towards 370 flat, with a stop just the other side of our entries in both instances.

Looking the other way, if we close blow in term support it will put us short towards 348.59, with a stop loss at 358 giving us plenty of reward on some relatively tight risk. From an intrarange perspective, if we bounce from support it will put us long towards resistance at 363.63, with a stop around 354 defining our risk on this one.

Bitcoin Price Technical Analysis for 3/12/2015 – Reversal Pattern Forming?

Bitcoin Price Key Highlights

Bitcoin price has gradually been trending higher but it looks like the rally is starting to lose steamPrice might be forming a head and shoulders pattern on its 1-hour time frame, as the recent bounce off the Fib levels barely gained traction.

Bitcoin price could be due for another selloff if the reversal formation is completed and a downside break of the neckline is seen.

Short-Term Area of Interest

Using the Fib tool on the latest down move shows that the 50% level lines up with an area of interest around $365. This also coincides with the 100 SMA, which might hold as a dynamic resistance level.

If so, bitcoin price could go on to form the right shoulder of the chart pattern, indicating that a reversal might be brewing. The neckline is located at the $350 level so a break below this support area could be enough to confirm the potential downtrend.

For now, the 100 SMA is above the 200 SMA so the path of least resistance is still to the upside. A move past the highest Fib at $370 could show that the longer-term uptrend might prevail and that bitcoin price is set to test the previous highs at $380 or possibly move beyond it.

Stochastic is indicating overbought conditions, though, and is turning lower to indicate a return in selling pressure. In fact, a bearish divergence can be seen since price made lower highs while stochastic made higher highs in November 30 to today.

Meanwhile, RSI is on the move up so there might still be enough buying pressure left for further bitcoin price gains. The average directional index is treading around the 50 level but is starting to turn lower, possibly indicating a return in ranging market conditions.

Intraday support level – $340

Intraday resistance level – $365

Why Bitcoin Investors Should Take the Current Upsurge with a Grain of Salt and Convert Their Virtual Funds into Gold

The virtual currency Bitcoin is currently celebrating a suspicious comeback. On Wednesday, November 4, it surged 25% and has reached the $500 mark for the first time since summer 2014. Just two months ago, the currency has been valued at about $200.

During the last three days, the currency has appreciated by 40%.In October, it has gone up almost 70%. Such a fast price increase is most likely not sustainable and indicates a bubble. Investors should watch out.

China’s capital restrictions cause capital flight; European regulators made Bitcoin trade more attractive by imposing tax-exemptions

There are a variety of factors affecting Bitcoin prices. Experts say, that the Bitcoin will benefit from technological developments in the next ten years. Nowadays, for example, more banks use blockchain technology, which is also used for Bitcoin trading. However, that is a long-term trend and certainly not enough to explain price increases of more than 100% in just two months.

Right now, the economic crisis in China seems to be the most significant driver, After the Chinese economy got hit in August and the government devalued the currency, Investors are leaving the market in an attempt to secure their assets.

Considering that Chinese investors hold more than $22 trillion in savings accounts, this trend has a huge firepower. So far, capital flight from China has almost reached $700 billion in 2015.

Currently, about 90% of the global Bitcoin trade is taking place in China, because the virtual currency is a comfortable way for investors to get their money out of the country. In October, European courts decided that exchanging Bitcoins for Euros or other European currencies will be tax-free. Therefore, it has become attractive for investors to buy Bitcoins instead of directly converting their Yuans into Euros.

Moreover, China’s government is trying to limit capital flight by restricting transactions of more than $50,000. Bitcoins, however, are traded anonymously. Therefore investors can use them to avoid trouble with regulatory authorities.

Bitcoins are not backed by any central bank; enormous fluctuations are common and pose risks for investors

On the contrary to other currencies, Bitcoins are not backed by any central bank. Supply and demand determine prices, which can lead to significant fluctuations. In 2013, for example, demand exploded and prices went up from about $20 in January to $1200 in December. When Mt. Gox, one of the world’s leading Bitcoin exchanges, filed for bankruptcy in early 2014, prices collapsed.

Lack of regulatory controls have made Bitcoin less predictable than other currencies. Investors should take the current upsurge with a grain of salt. What goes up quickly could come down quickly, too. The current Bitcoin trend might not hold for long, investors should try to secure their funds in physical investment vehicles where they can.

Gold prices are currently low and online platforms like BitGold make it easy to exchange Bitcoins for gold without high costs

A good strategy to secure funds is to convert some of this digital value into physical value. Investors who are looking for a safe haven, which doesn’t make them a subject to monetary policy, should take a look at physical investment vehicles.

Gold is especially attractive right now, because prices are low. Investors expect a Fed interest rate hike soon, which has pushed the precious metal below its recent support levels. Additionally, there is lower demand from jewelers and retailers, which has further driven gold prices down during the last months.

Moreover, another big advantage of the metal is that it’s fairly easy to convert Bitcoins into physical gold. Online platforms like Bit gold offer investors the opportunity to buy gold directly with Bitcoin. The company even offers its clients to store their gold for free at over ten physical brinks locations internationally.

Although the latest rise of the Bitcoin is not yet comparable with the bubble in 2013, it is not realistic to assume that this trend will continue for long. Investors should be vigilant and secure their funds. As equities and bonds are not very safe neither, gold would be a fairly good way to get at least some of your funds out of the danger zone.

Bitcoin Price Technical Analysis for 2/12/2015 – Pullback Happening As Expected

BITCOIN ANALYSIS, BITCOIN PRICE NEWS & PRICE PREDICTIONS

Bitcoin Price Key Highlights

As predicted in an earlier article, bitcoin price was prime for a pullback to the broken resistance area visible on its 1-hour and 4-hour time frames.Now that bitcoin price is in the middle of its corrective wave, applying the Fib tool to the latest swing low and high reveals that the 50% level lines up with the area of interest.

Bitcoin could be ready to resume its climb pretty soon, as the confluence of Fib levels and inflection points could hold as support for price action.

Rising Trend Line

Although bitcoin price appears to be finding support at the current levels, a larger correction might still be possible. The 50% Fib is closer to the broken resistance area and is also near the long-term 200 SMA.

A rising trend line can be drawn to connect the latest lows of price action, with this ascending support level coinciding with the 61.8% Fibonacci retracement level around $340.

This also lines up with the dynamic support at the 100 SMA. However, this short-term moving average is still below the 200 SMA so the path of least resistance might be to the downside. A break below the 61.8% Fib or rising trend line support might be enough to confirm that the longer-term selloff is still in play.

Stochastic is still on the move down, which means that sellers are still on top of their game and might be able to push for a deeper pullback. At the same time, RSI is heading south so bitcoin price might be able to fall further.

The average directional index is reflecting trending market conditions, so the ongoing uptrend could have a chance at gaining traction. However, if this ADX falls back below the 50.0 level, a return to ranging market conditions might be in order.

Bitcoin Price Decline Continues; Live Trade On!

Earlier this morning, in our twice daily bitcoin price watch piece, we discussed the key levels that we would be watching as the European session matured. The session is now drawing to a close, and we are likely going to see plenty of volatility tonight, given the movement we saw today. Action overnight in Europe (trading day in Asia) has given us some sharp momentum over the last few weeks, primarily as a result of the trading volume we get out of China. We will soon be launching the NewsBTC Live Trading Room – and the Asian session is likely going to play a big part in our strategy in there – so as we head into tonight’s action, here’s a run down of our strategy, alongside a description of how it applies in a practical session, using the framework of today’s movements. Take a quick look at the chart.

As you can see, action today broke to the downside and penetrated our predefined in term support shortly after lunch. Having done so, however, we saw the bitcoin price reverse and return to trade within range. Our stop was hit for a small loss – but not to worry, that’s what it’s there for!

In response to the break, we have shifted our in term support to the downside slightly, now coming in at 355.15. In term resistance remains as it has been all day, at 367.86. these are the two levels that will signal entry this evening.

If we get a close above I term support, it will put us in a long position towards an initial upside target in the same region we highlighted this morning – somewhere around 380 flat – with a stop around current levels at 365.

Looking the other way, a close below 355.15 will put us short towards 350 flat. This one is a little tighter, so a slightly tighter stop is warranted. Somewhere in the region of 357 would work perfectly on a relatively tight close below support.

Trading the New Bitcoin Bull with Binary Options

For a volatile asset, like bitcoin lately is, binary options provide an easy way to manage your exposure and emotions. As your losses are limited it is less likely that you will make impulse trades that are not in-line with your plan. In fact, it is easier to have a proper trading plan with binaries in the first place.

How? This article will guide you through it in 4 simple steps!

Let’s begin with a quick look at the factors that could fuel a new up-trend in the cryptocurrency!

The Bullish Case for Bitcoin

Bitcoin enjoyed a great run-up since the end of August; the price has risen from around $200 to as high as $450 in early November. Although since then the market experienced a correction back to $300, BTC looks to hold that all-important level. $300 is the upper barrier of the trading range where bitcoin consolidated after its steep decline in 2014. Now that it has broken out of the range decisively, the technical picture looks promising.

Building a binary options position in bitcoin

Binary options only require you to guess the direction of the price of the given asset from the current level. Looking at the technical evidence and the obviously positive fundamental background, BTC is a clear bullish candidate. Now you only need to figure out the optimal strike price and expiration date to get you going.

But before that you will need a binary broker to give you access to these products!

Step 1: Selecting a broker

The factors that you should consider when selecting your broker are the following:

Reliability—the history of the brokerPayout Ratio—determines your profitCommissions and Fees—the cost of tradingTrading Platform—you should feel comfortable with the platform

There are numerous options out there but as it is a quite new and booming segment of the market you should be aware of some of the brokers who have a bad history when it comes to withdrawals and customer service. You should get to know your broker before investing your capital! A reliable choice in binary trading is Optionsclick with good payout ratios and an easy-to-use platform.

Step 2: Choosing a strike price

With binary options, the crucial factor is the strike price. This price is the only condition that determines whether you have a profitable position or a loser. If the price is higher at the expiration date (and exact time of course) you will have the whole amount of the payout, but if it is lower than you will lose the buying price of the option. Generally speaking the (considering a bullish position) the higher strike you choose the lower your chances are but the higher the payout is.

It is a wise decision to build a strike ‘ladder’; don’t invest all your dedicated capital in one option. If you do this you will be able to profit from moves that don’t reach your final target price. For example, if you think that bitcoin will reach $500 you might split up you position into four options with strikes of $350, $400, $450, and $500.

Step 3: Determining the optimal expiration date

After you have decided on the strike price(s) you should think about the time frame of your trade. You may also build a ‘portfolio’ of expiration dates to spread out your risk in time. This way even if bitcoin will keep on having wild swings you will be able to benefit from the general trend without constantly worrying about the price.

If you mix different strike prices and expiration dates your options portfolio will be diversified both price and time wise!

Step 4: Planning your exit

This is the best part of binaries compared to “traditional” trading—you don’t need to have an exit plan! Your initial position will containthat! That removes emotions from the equation and that is an invaluable advantage in a volatile market!

An Interesting Alternative: Pair Options Trading

Pair options in the realm of binaries will provide you with further choices to profit from the bitcoin bull. You can select a wide range of assets to compare BTC with. This way, if you have a strong negative opinion on virtually any asset, you will be able to benefit from the relative performance of bitcoin. I encourage you to check out this stockpot Broker Review about one of the pioneers in the business for more information.

Whatever types of options you choose don’t forget to control your exposure—just trade with the amount that you are willing to lose should your views prove wrong. With binaries you don’t need to worry about stop losses or profit taking orders; your position size will be your stop loss!

Bitcoin Price Collapse; What’s Next?

Throughout the early part of yesterday’s European session, and in response to the overarching bullish momentum we have seen over the last few days, the bitcoin price gained strength to reach intraday highs of 383 flat. During the latter half of the session, however, and as we headed into Asia, bitcoin gave away much of the gained strength. Early today’s session, we’ve seen the bitcoin price collapse, losing just shy of $20 worth of strength in under 30 minutes. We are close to midway through the European session on Tuesday, and the bearish momentum looks set to continue. With this said, here are the levels we are looking at today.

As the chart shows, we have adapted our parameters to take the recent action into consideration. In light of this, we are now looking at in term support at 356.36, and in term resistance at 367.86. Given the current action, we will likely see a test of in term support before we do in term resistance, so let’s address our response to this testing first.

We will bring our breakout strategy into play, so if we get a close below in term support on the intraday chart, it will put us in a short position towards an initial downside target of 345 flat. With about $10 worth of reward on offer, we will be looking to cap off our risk at around $3-4. As such, a stop loss somewhere in the region of 360 flat should keep things attractive from a risk management perspective.

Looking the other way, if we get a close above in term resistance, we will look to enter long on an upside target towards 380 flat – the most recent swing high. A stop on this one around 364 defines our risk nicely.