The Bitcoin (BTC-eUSD) 4-hour chart below shows that buying pressure overwhelmed the bears, with the price up $5.73 or 1.52%. It is above the cloud, along with the lagging line, giving a strong indication that the price is currently experiencing an uptrend. The price action has risen above its first daily resistance level at $380.83, which has held as strong support. The next resistances will be found at $383.03 and $386.57.
The green span is additionally moving above the red span. Additionally, its relative strength index isindicating an upward trend, signalling that the price has the potential ascend before returning. The cloud that is projected ahead is relatively flat, indicating support at a constant level for the next few days, around the $375 mark.
Mastercard (NYSE:MA) used a submission to the Australian Senate Enquiry to discourage digital currency adoption. They noted that Australian lawmakers should enforce regulation to address the anonymity of transactions that occur with digital currencies. They additionally added that Bitcoin can be used to launder money and engage in illicit activities, as opposed to their payment service. It seems that MasterCard feels threatened by Bitcoin and other digital currencies, which may end up forcing them to re-think their business model. The committee on digital currencies in Australia is scheduled to release its findings in March, 2015.
Citi reckons that the auctioned Bitcoins from the Silk Road dark net website will be sold at discount prices. The U.S. Marshalls Service (USMS) is set to auction 50,000 Bitcoin this coming Thursday. The recent decline against the dollar is cited as one reason why bidders may post lower prices during the auction. The USMS has roughly 90,000 more Bitcoin to auction, which are likely to be sold below the market price. However, the ‘know your customer’ requirements for USMS auctions may put off some investors, who could just buy them on the open market.
The daily chart below shows that yesterday the price failed to close above the cloud. However, the price looks set to close above the cloud today, indicating an upward trend. Unless the price closes below, the candle will be above the cloud. The cloud projected forward has turned to green, with the green span moving above the red span, which is a strong bullish signal.
However, the base line remains above the conversion line, and a close above the base line at $397.16 would give an indication of bullish momentum. A strong break above $400 would be expected to materialize if this occurs. Additionally, its relative strength index is slightly bullish, since it is more than 50, currently at 54.62, indicating that the price should move higher before retreating towards the cloud.
