It’s a well known fact that the Bitcoin price reached a record low when it went under $200 only several days ago. However, since then the price gradually went up and reached new highs of $232.46. Even though the hopes for going over $235 are still not fulfilled, there is kind of a positive trend of growing. Nevertheless, Bitcoin traders are well aware that the price of the crypto currency has been pretty volatile over the past several weeks and hence they are wondering what’s to be expected of the Bitcoin price’s future.
The last 24 hours in the trading market witnessed Bitcoin maintaining a relatively flat action since the lack of profitable trading. Many believe that the crypto currency market has been stuck in a twister which is partly affected by the global stock market drop. However, experts didn’t fail to remind that fall of the price of a speculative asset is not uncommon during a time of a global stock meltdown. Therefore, some even advise traders to go for cheaper Bitcoins and then trade them after the currency recovers.
How’s the Bitcoin Doing Today?
Nonetheless, these theories didn’t help Bitcoin too much and trying to trade the crypto currency over the past days has been tough. Traders were first scared of the sharp drop and then when the price went up, it couldn’t provide the desired stability. Therefore, before deciding which way to go and whether to start trading at all, traders should carefully analyse the situation.
The average price of the Bitcoin today is $226.63 and the day price range is between $224.71 and $23.81. The market cap has gone up to $3.19 B, just like the volatility which reached 23.42%.
On the long run, the current situation is worse than the same period last year since the price has noted a drop of 27.75%. On various charts you can easily notice that after the record high that went above the $230 borderline on 31st of August, the price once again fell and has difficulties to grow as many traders hoped it would. More precisely, everyone was hoping that Bitcoin will regain its previous trading range of $230-235.
Technical Indications and Few Suggestions
The Bitcoin chart structure doesn’t seem to change too much, whereas the moving averages of the last 30 days are much lower than the 50-day SMA. Currently this number is $245.5417, while it used to be higher $261.3184. The moving average convergence divergence reached -9.9548, while the signal line stopped at -12.2698. As a result, the histogram’s value is set at 2.3149.
Three other indicators that require your attention are the momentum, the money flow index and the relative strength index. The first one fell below the zero and reached -2.8900, whereas the money flow index noted only a marginal change settling at 54.0633. The last indicator is quite good at illustrating the pessimism at 37.6093.
With such numbers, traders should stick to going short on Bitcoin setting a target of $215. Tight stop losses are highly recommended since reaching $200 or less is still an option. Light short positions would be a good choice for low-risk traders.