Bitcoin traders had a hell of a ride for the past several weeks. First, the currency drastically fell under $300 and even traded for less than $200 per coin. Then, it started to move in a positive direction, but it never seemed confident enough in order to give traders hopes that the situation was under control.
However, after three weeks of constant value increase and several milestones reached, it’s definitely time to set our hopes high and aim for the $300 mark again. For the record, the Bitcoin price was around $230 by the end of September when it started to gradually grow. Gaining on value with each passing week, it finally breached the $270 mark over the weekend. Naturally, all of this is extremely surprising because the cryptocurrency’s value went over the $250, $260 and $270 thresholds in only several days.
Be Thankful to the Weakening US Dollar and Shaky Chinese Economy
Before we take a look at the chart and the indicators, we would like to quickly go over the events that helped the Bitcoin to reach this record high price in the past two months.
First, we have the weakening US dollar that boosted the Bitcoin price. According to some recent survey among Americans, most of the people don’t believe that their economy is strong enough. Additionally, the government revealed a drop in consumer price index as well as in producer price index. Naturally, such news always affects the country’s currency and thus the final result was favourable for the cryptocurrency.
Second, we have the Chinese shaky economy that has already been a topic of interest in early September. The country doesn’t seem to improve its situation and even the Prime Minister Li Keqiang confirmed this. Therefore, Chinese people are once again seeking a way of protecting their possessions by purchasing Bitcoins. As a result, the bigger demand for the cryptocurrency increased the Bitcoin’s value.
$272 Peak Reached Briefly; Currently the Bitcoin Stays around $264 Mark
A quick look at our Bitcoin price chart reveals that the digital currency managed to breach even the $272 threshold for a while on 17th of October. However, that didn’t last long and the Bitcoin quickly fell under $270 again.
So, in a situation when the Bitcoin is trading for $261.26, we can notice a pretty wide daily price range of more than $10. The lowest price the cryptocurrency has noted in the past 24 hours is $260.27. The daily high, on the other hand, is much higher $270.67. The year to date change seen on our price chart is -16.74%, which means it’s still falling. The market cap has also noted a fall and calmed at $3.67 B. The volatility is 18.02%, while the volume has finally jumped to 38,355.6.
The current Bitcoin price is a bit lower than the 30-day and 100-day SMA that have respective values of $262.16 and $261.99. The relative strength index has noted a fall as well; currently this indicator has a value of 38.7100.
To sum up, this improved price of the Bitcoin shows that traders are interesting in buying; therefore, even though seemingly far away, we have the right to believe that the $300 mark is going to be reached very soon.
As always, traders have to be careful since at any given time there can be an unexpected turn of events that might hurt the Bitcoin price. Thus, they should place stop loss orders slightly below $260 and have in mind the intraday support level of $265.