With many traders remaining on the sidelines looking for a price trigger, Bitcoin is witnessing yet another uninspired trading day, devoid of any major directional move or even a sign of breaking out of the narrow range it has formed. BTC/USD edged lower to $620.95 following a steady climb from $615 to $625, but once again failing to make any move beyond the support and resistance levels.
Technically, the price is still above the support level of $615 and buying is recommended at current prices with a stop-loss (closing basis) placed just below $615 for a target of $630. Short positions are still a big NO, given that there are no visible signs of a breakdown. While it may appear that the range has continued for far too long, trading should be avoided in anticipation of a major move.
It seems that investors are opening up to the idea of more Bitcoin-based exchanges in Japan following the terrible failure of Mt. Gox, which could possibly act as an important trigger, at least for a while. This had helped push the price down from a near $1200 to $340.
Currently, Yuzo Kano, an ex- Goldman Sachs employee, has raised $1.6 million in funds to fill the void left after the Mt. Gox collapse through another Japan-based Bitcoin exchange called bitFlyer. This development follows a similar announcement earlier this month by the China-based ATM manufacturer BitOcean and the New York-based Atlas ATS to launch an exchange in the Japanese market.
Meanwhile, in India Bitcoin supporters have ramped up their efforts to re-launch the cryptocurrency, following the red flag given by the Reserve Bank of India. Bitcoin start-ups such as Coinsecure and Unocoin, are working towards placing Bitcoin as a recognized currency and are confident that eventually, things will turn in favour of the cryptocurrency.
Currently the Indian government is unclear about how laws would apply to Bitcoin with NA Vijayshankar, a cyber-law expert, stating that the government should not really interfere with Bitcoin transactions at present, but may well make digital currencies taxable in the future.