Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Would Bitcoin Find Stability If It Traded As A Commodity?

Published 11/26/2014, 07:35 AM
Updated 07/09/2023, 06:31 AM

Bitcoin (BTC-eUSD) reached a higher-high for the fourth consecutive day, with the price spiking at $395.11. Currently it stands at $379.85, up 1.03% or $3.86 on today’s open. A re-test of the psychological level of $400 looks certain, and if the price remains above this level, the upward trend could intensify. A downward cross-over of the MACD indicator looks imminent at the 4-hour timeframe which would signal the start of a downtrend, andshould cause it to find support at $368.64. However, the MACD at the daily timeframe looks set to make an upward cross-over.

The North American Derivatives Exchanges is set to offer Bitcoin options in early December, conditional on the success of the company’s filing with the Commodity Futures Trading Commission. Other exchanges are expected to offer other Bitcoin related products in the U.S., similar to derivatives traded for commodities. This should make Bitcoin trading easier and see more innovation in the financial services industry.

An official from the Dutch Ministry of Finance suggested that Bitcoin will not be liable for Value-Added Tax (VAT). The Ministry of Finance additionally seems to be considering a VAT exemption for businesses. If the tax authority goes with these remarks, it may very well stimulate the business environment in the Netherlands and produce a clearer road for bitcoin-payments.

The daily chart below shows the price action along with Bollinger® bands, with 1 and 2 standard deviation. The volumes on the BitStamp exchange are additionally featured below. The upper Bollinger band with 1 standard deviation acted as resistance, with the price reversing towards $350. The ‘buy zone’ lies between the 1 and 2 standard deviation upper bands, which is between $396.27 and $418.60. A close above $396.27 would indicate a breakout in the price and confirm an uptrend. Presently, the price lies within the 1 standard deviation Bollinger Band, so neither long or short positions are recommended using these indicators.


Using the 4-hour chart, the technique further indicates an uncertain trend. The price has moved into the neutral zone and if it closes in this area, neither buy nor sell orders will be signaled. However, if the price manages to close above $382, then the price action will be in the ‘buy zone’ and a continuation of the upward move is expected. Sell orders should look to enter below $355, where the ‘sell zone’ lies at the 4-hour timeframe.

BTC/USD 4-Hour Chart

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.