(Bitcoin) is currently trading around $553.60, down 2.57% over the past 24 hours. BTCJam, a peer-to-peer lender, has suffered an apparent security breach that affected an unknown number of users. BTCJam hastily reassured customers that no bitcoins were taken from their accounts. The majority of coins held by BTCJam are in cold storage, meaning no users lost any bitcoins. The company posted on its blog that hackers were able to temporarily initiate unauthorized transactions from a few accounts that did not have two factor identification enabled. This may spook Bitcoin traders/investors, however the guarantee given by BTCJam that no bitcoins were lost from any accounts is positive for Bitcoin fundamentals.
Order logistics company Rakuten Super Logistics, a US subsididary of the Japanese firm Rakuten, has begun accepting Bitcoins, due to consumer demand. Rakuten represents the third largest company to have some of its operations intgrated with digital currencies. Rakuten’s integration with Bitcoin indicates Bitcoin’s growing status in Japan.
The Managing Director of the Monetary Authority of Singapore (MAS) stated the MAS’s intentions to build a regulatory framework for digital currency intermediaries; it will apply anti-money laundering and countering the finance of terrorism. However, he stressed that the regulation will not hamper the development of digital currencies, choosing to address the risks in a targeted way so that it does not stifle innovation.
LakeBTC, a Shanghai-based exchange, have added the Ripple network transfer option, meaning that users no longer have to wire fiat money LakeBTC’s account. Instead, consumers can now deposit (or withdraw) funds with a Ripple gateway in their local area in any currency and transfer it to a Lake BTC/USD account via the Ripple network. The decision to add the Ripple network resulted from consumer dissatisfaction with traditional banks, who charge fees and delay transactions. Also, a significant number of people do not have access to regular banking services. The Ripple network will enahnce the speed of transactions and reduce the costs. This development should allow more participants into the Bitcoin market, especially those with no access to a bank account.
The daily chart above shows the parabolic stop-and-reversal and stochastic indicator. The parabolic stop and reversal indicates that any sell orders should not be completed yet and that the downwar trend will resume. The stochastic has moved into oversold territory and traders should keep an eye on this indicator, as a move above 20 for the stochastic may see a daily gain for Bitcoin.
Also, looking at the moving averages for the daily chart, we see that the longer term moving averages are above the short term moving average, confirming the downward momentum. The chart below shows the 4 hour chart with the parabolic Stop and reversal and the relative strength index (RSI), which indicates the current negative trend is not that strong and the oversold conditions are being reversed, as the RSI is moving above 30. It is likely that at present, Bitcoin is overvalued and we could see an upward movement.
Today’s important daily support levels are at: $539.00, $495.96 and $436.02
Today’s important daily resistance levels are at: $600, $641.98 and $701.92