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Bitcoin Drops below $300; Scores some Wins Nonetheless

Yesterday the Bitcoin price dropped under $300 and that’s yet another low the cryptocurrency has hit this week. After the incredible several weeks of constant growth, the bulls lost their power and currently the Bitcoin is noting slight value decreases. First it fell under $400, then went below $350 and now another low has been reached.

However, even though this period is not particularly positive about the digital currency, the Bitcoin actually managed to score some very interesting wins worldwide.

Latest in the row of good news are the step of over 100 banks to ask to integrate Bitcoin and the attention the currency received in mainstream media. For example, Los Angeles Times dedicated the Bitcoin a whole article claiming its recent growth was boosted by pro-Bitcoin regulatory changes in China and the selling of 44,341 coins by the US government.

Price Chart Overview

Let’s see what our price chart has in stock for us today. The current trading price is $329.97 and it was $321.63 only two days ago. Therefore, we can see that now the average price of the currency is moving between $320 and $330. Similar pattern can be seen in the day’s price range that goes from $310.84 to 342.72

The year to date change is still pretty low, but in the positive with a value of 5.15% and the market cap is set at $4.64 B. The volatility hasn’t changed too much with its value of 17.26%, whereas the volume is 156,158.49.

If we compare these numbers with last Friday’s numbers we can see a constant trend of decreasing value. For example, at that time the trading price was $367.42 and the daily high was amazing $445. Also the market cap was much better $5.16 B. Thus, even though the drop wasn’t too sharp, it’s easily recognisable nonetheless.

Technical Indicators Analysis

Even though some technical indicators have stabilised, still majority of them suggest that traders should stick to selling. The 14-day RSI has left the strong sell position and now it’s in the neutral with a value of 50.081. The MACD has a value of 2.190, which signals buying. However, the Williams %R (-57.140), the ultimate oscillator (48.978) and the bull/bear power (-3.5570) all signal traders to sell.

When taking a look at the moving averages, on the other hand, once again all of them are pro-sell except for the 50-day SMA and its value of $322.59. The 100-day SMA and EMA are set at $339.61 and $337.37. The situation in the 200-day SMA and EMA are similar with values of $356.37 and $342.58. Hence, if traders are taking these numbers into consideration they should either sell or wait for better times to buy.

With these indicators in mind as well as with the current situation on the price chart, we can set the intraday support level at $293, while the intraday resistance level is lowered at $350. The fact that yesterday the Bitcoin fell under $300 and today the situation got better gives us hope that things might start improving.

However, until there’s a strong indicator that we’ll witness another price jump, it’s better to be very careful when opening trades and be well aware that there might be further price drops over the weekend.

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