Yes, the Bitcoin reached the $250 threshold and the question that emerges is: now what? Well, as usual, the best thing we can do in order to form an opinion concerning the Bitcoin future price movement is to pay attention to the chart as well as to the technical indicators.
However, first we would like to point out that yesterday was the first time for the Bitcoin to break the $250 mark since its steep fall for 13% on 19th of August, 2015. The cryptocurrency have been struggling to get back on feet and after three weeks of steady growth we can conclude that the Bitcoin possibly regained its strength. During this three week period the Bitcoin has gained 12% from its initial support level of $223.
Another thing that can be crossed off the list is the 50-day moving average, which was also breached for the first time since the beginning of August. For now, traders can be calmed when it comes to possible price drops and hope for the best. Naturally, the next target for the virtual currency is the $260 threshold.
Price Constantly Goes Over and Under $250
Currently, the Bitcoin is trading at $249.93 per coin. Nevertheless, even though the price at the time of this writing is under the $250 mark that doesn’t mean that the currency’s value has fallen. Quite on the contrary, the Bitcoin is fighting strong and breaches that threshold over and over again.
Besides the current price, other interesting values seen on our Bitcoin price chart are the day price range and the year to date change. The first one has two positive values of $242.86 low price and $250.65 high price. The year to date change is set at 20.35%. As the Bitcoin price grows, the market cap rises as well; thus, today it reached $3.51 B.
The volatility is 18.6%, a bit lower than the 19.02% that was noted several days ago. One thing that worries experts right now is the volume which jumped to 30,440, but it’s still not good enough taken into consideration the current Bitcoin price.
The question many traders have been asking because of this slow volume movement is whether volume is preceding price and whether a sharp movement should be expected any time soon? The answers to these questions are “yes” and “yes.”
Strong Momentum and Too High Money Flow Index
The technical indicators today promise bullish action on the Bitcoin trading market. However, it’s not recommended to avoid using stop-losses. Also, you’ll see that even though the Bitcoin is a buy candidate for now, it’s better to open long positions and keep your stop-loss orders a bit below the $240 mark.
The moving average convergence divergence jumped to 3.4928 and the signal line has calmed at 2.6306. Additionally, the histogram is still in the positive at 0.8622. All these are overshadowed by the extremely strong momentum that went over the 10 line and reached 10.2100.
Another strong technical indicator is the relative strength index that breached the 60 threshold and now has a value of 63.0498. However, a bit worrying is the once again too high money flow index of 80.0649. Therefore, have in mind the advice given in the beginning of the paragraph and avoid opening high-risk trades.