If last week’s top Bitcoin price related news was the fact the cryptocurrency has briefly traded for about $600 per coin, today we start the week with the currency down at $570. The overall price change in the past 24 hours has been -2.02%, plus the rest of the segments aren’t promising either. Therefore, traders have the right to fear that additional price drops may take place during the week in case nothing changes among the technical indicators as well as the volume.
Other than the evident drop in the value of the Bitcoin, there are several things that need to be shared with our readers. Therefore, we will instantly move on to the latest Bitcoin-happenings in the world and afterwards we will overview the situation on the price chart.
Bitcoin Considered Cash Equivalent; Bitfinex Recovery Plan May Be Challenged
One of the best established online gaming regulators – the UK Gambling Commission – revealed that it views the Bitcoin as cash equivalence. That’s good news for the cryptocurrency, which has been struggling for years to establish itself as real money. Namely, in its license conditions the authority has stated that operators have to have appropriate policies regarding the use of cash equivalents and cash. Bitcoin, among a selection of other banking methods, was mentioned as a cash equivalent.
On the other side of the world, Hong Kong-based Bitfinex may not be able to complete its recovery plan after the hack attack, since its open to legal challenge. The exchange wanted to impose the losses on its entire client base by forfeiting from them 36% of their deposits. However, imposing losses on users that weren’t affected by the attack is against the exchange’s terms of service. Therefore, it remains to be seen how Bitfinex will deal with the situation and whether at least some of the users will get to keep their coins.
Nevertheless, amid negative events, hack attacks and Bitcoin being related to drug dealers and terrorist, the cryptocurrency and the technology behind it have one strong supporter: IBM. Arvind Krishna, a senior vice president at IBM Research Almaden lab, explains that the blockchain was about “distributed trust” and that it would offer the possibility for half the disputes to be resolved automatically.
Volume Down; Strong Sell Signal Recorded
Yesterday afternoon was the last time the Bitcoin was above $580, with a value of $581.01. Ever since, the crypocurrency has been trading for much worse $570 and even less. The 24-hour low registered on our price chart is $560.07, while for the most of the day the Bitcoin has been moving in the $560-570 territory.
With the price drop, there’s been a decline in the market cap as well. Therefore, today its value is $9.04 billion. The volume has fallen also and reached $60,257,700. As you have learned by now, lower volume signals either price drops or status quo. Last week when the volume dropped, the price went down as well. Therefore, traders may want to be prepared for additional losses in value.
This opinion is supported by the technical indicators and the moving averages. Five indicators and 11 averages are sending a strong sell signal, whereas only three indicators and one average are pro-buy. There are also three technical indicators (Williams %R, CCI and highs/lows) which are neutral.