Free Stock Trading Alert originally sent to subscribers on January 23, 2014, 8:23 AM.
If you don't have time: we don’t suggest closing long positions.
Yesterday, Jarar Malik, a Bitcoin enthusiast posted on reddit the e-mail conversation he’d had with several Google employees, including Vic Gundotra, Senior Vice President, Social and Sridhar Ramaswamy, Senior Vice President, Ads & Commerce. In the discussion, Gundotra acknowledged that the company was paying attention to Bitcoin and Ramaswamy specifically mentioned that the payments team was working on incorporating Bitcoin into Google’s plans.
Andy Greenberg from the Forbes approached Google to get more info on this topic and the company got back to him writing:
As we continue to work on Google Wallet, we’re grateful for a very wide range of suggestions. While we’re keen to actively engage with Wallet users to help inform and shape the product, there’s no change to our position: we have no current plans regarding Bitcoin.
This response is quite different, but Google doesn’t actually say it’s not working on Bitcoin-related issues – it seems it’s saying it doesn’t have any concrete plans for the currency, for now.
No matter if this piece of news is actually materially important for Bitcoin users, the price of bitcoins could swing following any announcement from Google that it is in fact considering using Bitcoin in any way. This might have been the case when Zynga informed it would start partially accepting bitcoins.
Now back to the Bitcoin market.
Yesterday, Bitcoin lost 1.2% on Mt. Gox, compared with the previous day’s close, and ended the day at $951.00. The volume (btc 4,322.79) was even lower than on Tuesday. Altogether, it was a small move down on low volume.
But the truly unusual seems to be happening right before our eyes today. The currency is trading right at yesterday’s close (at the moment of writing, past 6:30 a.m. EST) and the volume is btc 512.33 (sic!). Yes, that means that only slightly more than 512 bitcoins have been traded today so far.
Every market experiences periods of stillness but what we’re seeing now is jarringly incongruous with all the action and media attention Bitcoin has been receiving. If January has been the month of calming down, today seems to be the day of nothing happening.
Obviously, this can change fast. Such a tiny volume means that one bigger order might swing the market in either direction. Actually, it’s totally conceivable for one order to be bigger than the whole volume we’ve seen today.
The chart itself doesn’t reveal anything particularly new. Bitcoin is still between $800 (our stop-loss, dashed red line in the chart) and $1,000. If we see the currency moving below $800, we will suggest closing longs and, depending on the situation, might suggest going short. However, if the move is above $1,000, the situation might turn to outright bullish.
The recent actions seems almost “to calm” for Bitcoin. It might be the case that a bigger move is just round the corner.
Summing up, there have been no changes since yesterday, except for the volume being almost “non-existent.” We’re still more bullish than not.
Trading position (short-term): long, stop-loss at $800. Even the smallest action or news on Bitcoin could ignite a serious move at this point, so it’s particularly important to stay alert.
Thank you.
Mike McAra
Bitcoin Trading Strategist
Bitcoin Trading Alerts
