After a stormy week, things are once again looking very quiet for the world of Bitcoin, as the market remains nearly the same as our last update. As it has happened many times before, weekend trading has put the price to a test, breaking the support level and taking the price down to another range. It seems that the buyer pressure that started showing on Friday has intensified during the weekend, as the price-boosting panic subsided once the world made peace with Trump’s victory.
In other news, Bitcoin sales in India have raised rapidly due to the country’s demonetization agenda that took Indians by surprise. Only a week ago, the Indian government announced a plan to demonetize Rs 500 and 1000 notes as a way to curb black money, starting a financial nightmare for the population. The rash decision led many to look for other investments like gold, jewelry and Bitcoins.
As the Hindustan Times reported, following the demonetization interest in Bitcoin has jumped by 20-30% in India’s largest Bitcoin exchange, ZebPay, which in turn has raised the price to somewhere around $800 and gave Bitcoin in India a 12% premium over the price in international exchange markets. This is bad news for Bitcoin users in the country, as the government has also restricted Forex trading, making it impossible to use arbitrage to avoid the high price.
For the time being, the price of Bitcoin is consolidating around $700, following the weekend break of support. The lowest point was on Sunday afternoon, when the price broke out of the $710 range and dropped down to $690.43, only to recover three hours later. But ever since yesterday there have been no other cases of high volatility and the value has been only going upwards.
During the past 24 hours, the trading volume has been gradually increasing, which is always a good sign for those who hope to see the price going up. It is currently at $66,579,800, while the market cap is virtually unchanged, at $11.3 billion.
From our technical analysis, we can say that the Bitcoin price is, at least, headed for consolidation, as the market is strongly inclined towards buying. Out of 12 technical oscillators, 9 send a buying signal, while 2 remain neutral. A similar trend can be seen in the moving averages, 9 out of 12 of which are pro-buy. The overall picture is pro-buy, which always hints at further price boosts.
However, you should still keep a close eye on the market as the Stochastic is already in the overbought zone and the SMA 100 has dropped below the SMA 200, indicating a small seller pressure. If the winds change, we might see the break of another support.
Blockchain with Record Traffic Thanks to Trump’s Win
Blockchain are on a path to set their biggest traffic record, thanks to the US 2016 presidential elections, the Business Insider reports. According to Blockchain’s CEO, Peter Smith, the Bitcoin wallet is getting more and more activity every day, with the biggest spike in interest being on the day of the election results.
The main reason, as he sees it, is that many people are creating their own hedges to protect themselves against cases of economic turmoil. He adds that traditional currencies like the British pound are becoming more “worrying”, and many turn to assets like Bitcoins, which even Bloomberg advises on. This ever-increasing trend has lead to an increased interest in Bitcoin platforms in the past year and brought Blockchain the first month of “millions and millions“of users.