• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 701 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Bitcoin Trading Alert: More Appreciation to Come for Bitcoin but Not Just Now

Bitcoin Trading Alert originally published on June 10, 2014, 11:02 AM


 

In short: we don't support any short-term positions in the Bitcoin market at the moment.

John Donahoe, eBay's CEO, told CNBC PayPal was "going to have to integrate digital currencies." He also expressed the view that digital currencies would "play an important role going forward."

This is quite a big deal since PayPal is actually part of the eBay business. Even if you consider the fact that Bitcoin has been already supported by companies like Overstock or Dish, PayPal accepting Bitcoin seems like a whole different story. The company has some 140 million registered user accounts. Combine that with the range of goods offered on eBay and you'll get all but the perfect marketplace for bringing Bitcoin to the wider audience.

The evolution of digital currencies might look like a slow process, at least to those who would like to see them implemented as soon as possible, but there might be landmark decisions along the way. If eBay figures out a way to make use of Bitcoin without interfering with the currency's most loved characteristic, i.e. the ability to support cheap and seamless payments, we might as well see that as an important step forward, particularly given the fact that not only Bitcoin-lovers use this platform. In fact, the ability to pay for goods on eBay in Bitcoin could popularize the currency among people who are not familiar with it at the moment.

For now, let's turn to the charts.

BITSTAMPUSD Bitcoin BitStamp (USD)
Larger Image

On BitStamp, we didn't see any decisive action yesterday. The volume was up but it was not confirmed by a large swing. If you recall what we wrote yesterday:

Bitcoin hasn't moved below $600 but we're still in the "standby" mode - in the past 6 months most rallies were followed by rather sharp corrections. We don't expect this to be the case now as the rally we saw in May and June seems to be different than the rallies we saw in the first half of the year. Caution is prescribed, nonetheless, since any sharp move up might be followed by a correction.

This is still the case today as Bitcoin hasn't moved much (this is written around 10:15 a.m. EDT). If anything, the short-term picture is now slightly more bearish since Bitcoin seems to be lagging the recent trend (grey line on the chart above). This doesn't have extremely bearish implications but doesn't inspire to go long just now.

Has anything changed on the long-term BTC-e chart?

BTCEUSD Bitcoin BTC-e (USD)
Larger Image

It doesn't look like there have been any major changes in the outlook. Bitcoin is still consolidating above the trend line and, perhaps more importantly, above $600 (green line on the chart). All this looks like a pause before another move up.

If we combine the two outlooks, the short-term one and the long-term one, it seems that we might still see some weakness in the days to come or at least more sideway trading before a stronger move up materializes. Consequently, we're waiting for a sign of short-term strength before opening long positions.

Summing up, in our opinion no short-term positions should be kept in the Bitcoin market at the moment.

Trading position (short-term, our opinion): no positions.

Regards,

 

Back to homepage

Leave a comment

Leave a comment