Bitcoin Trading Alert originally sent to subscribers on March 20, 2015,
1:14 PM.
In short: speculative short positions, stop-loss at 283,
take-profit at $153.
Intel might be looking into Bitcoin, we read on CoinDesk:
California-based semiconductor manufacturer Intel appears to be dipping
its toe in the digital currency space, following a bitcoin-related job
posting.
The multinational company is looking for a cryptographic researcher to
join its Special Innovation Projects Group, part of its in-house research
organisation, Intel Labs.
An advertisement posted on job site Indeed notes the chosen candidate will
be required to "investigate hardware and software capabilities that
advance the performance, robustness, and scalability of open, decentralised
ledgers".
It continues:
"Working with a team of distributed systems, operating systems and
security technologists you [the candidate] will focus on development of
cutting-edge, cryptographic algorithms for improving [...] transaction
verification within an open, decentralised ledger".
We’ve already heard about IBM looking into their own kind of digital
money. Now, we see that Intel also begins work on cryptocurrencies. One job
posting is definitely not enough to conclude that Intel is very serious about
digital currencies so we’ll definitely have to wait longer and see whether
this will be followed by more effort to develop digital cash.
What this shows, however, is that Bitcoin is slowly making its way into
various parts of the technological sector. Just to think about it, at first
Intel doesn’t seems like a company that would be very interested in digital
cash, since they are mainly a hardware provider. But the fact that they’re
looking into digital currencies might indicate that ledger-based systems
might have a lot more applications than only money transfers. Just what kind
of application Intel will find for Bitcoin remains to be seen.
For now we focus on the charts.
On BitStamp, we saw an important move on Wednesday. The action was more
subdued yesterday in terms of price swings but the volume was actually significant,
lower than on the day before but still significant. Quite importantly, we
didn’t see a meaningful rebound. Bitcoin stayed above $250 but the slump was
not erased which might suggest that the short-term trend changed.
The main fear after a move like we saw on Wednesday is that it might be
followed by a rebound. It wasn’t yesterday. It hasn’t been today (this is
written around 12:00 p.m. ET) and the volume today hasn’t been really
significant. What does this mean? Our take here is that we might see a couple
of days of sideways trading but the outcome might actually be a further
slump. It seems that the rally might have run out of steam and that we’ve
just seen the first signs of the continuation of the long-term decline.
On the long-term
BTC-e chart we actually see a possibly important development. Bitcoin closed
below a possible rising trend line on Wednesday (upward sloping black line in
the chart), it closed below this line yesterday and it’s trading below this
line today. It seems that we’re hours from a third close below a possible trend
line. Since there has been no indication of a stronger move to the upside and
the recent move down was quite significant, it seems that we might actually
see a continuation of the decline.
Looking at the RSI Index, Bitcoin has been going pretty much in one
direction – from overbought down, but there’s still plenty of room before we
see oversold territory being hit. Consequently it seems that we might have
just seen a break below a possible trend line, significant volume on a move
down, weak volume and lack of rebound following the decline, continued
weakening as far as price levels are concerned and possible room for further
declines. The only thing that seems to stop the decline is the lack of the
break below the $250 level (green line in the chart). Our take now is that
the lack of rebound might indicate that the following action is going to be
to the downside. Because of that, we think that opening hypothetical
speculative short positions might be a good idea.
Summing up, we support speculative short positions in the
market.
Trading position (short-term, our opinion): short,
stop-loss at 283, take-profit at $153.
Thank you.
Regards,
Mike McAra
Bitcoin Trading Strategist
Bitcoin
Trading Alerts
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