Bitcoin: Dead Cat Bounce Or Start Of The Recovery?

After an extended period of low volatility, Bitcoin (BTC-eUSD), much to the chagrin of range traders, has started making large swings on both sides. In recent trading sessions, the digital currency has swung from a low of $570 to a high of $596 and is currently stabilizing at $590. As the RSI (Relative Strength Index) indicator has depicted, BTC/USD was grossly oversold near $570 with an RSI reading of 25 and looked suitable for a technical pullback. Since the breakdown, BTC/USD has been in a perfect lower-top lower-bottom structure and only a close above $600 will break this downtrend.

Traders can use “dead-cat bounces”such as the recent one to go short in this counter. Any rise toward $600 should be used to build short positions for a target of $580 by keeping a closing basis stop-loss just above $600. While $610 has now become a major resistance level for the pair, strong support lies a little deep in the $540-550 zone. It is advised that unnecessary momentum chasing be avoided since the risk/reward is unfavorable and Bitcoin, being a very volatile script, can cause huge unnecessary losses.

World renowned Bitcoin investor Tim Draper has helped IT security startup CrowdCuritygarner $1 million in seed funding. The company now aims to use the funding to expand itself by making security solutions available and affordable for all businesses. Until now, security used to be a luxury since only corporations with hefty budgets could afford it, but that could change with this latest development. After partnering with China-based Bitcoin ATM manufacturer BitOcean for a Japanese venture, Atlas ATS is now going a notch higher with its latest international venture, Atlas ATS Europe. Bitcoin mining firm CoinTerra has acquired a Hungarian software firm Bits of Proof (BOP) to gain access to the widely acclaimed BOP protocol. Bits of Proofwill provide unparalleled softwareexpertise that complements CoinTerra’s large-scale Bitcoin mining operations.

 

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BTC 12nKwdJ3jjDQCsU9tNwe6aEPUfky4HtXQX
LCT LQkPrfSwrFBh11bSa9Kc9p2ajSLyi8hTiG
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via Bitcoin: Dead Cat Bounce Or Start Of The Recovery? | Investing.com.

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