After a jump that helped it hit the $450 mark, the Bitcoin lost its power again and stumbled under $430. According to the technical indicators, we might see another drop before 2016 is officially on, but that doesn’t mean that there won’t be a price improvement as well. Whatever happens, we’ll be following any value movement closely and track any events related to the cryptocurrency.
In terms of happenings that took place this past weekend, we can’t point anything specific when it comes to legal changes. However, two interesting milestones have been reached by the Bitcoin that probably make very proud its inventor Satoshi Nakamoto. Namely, on Christmas Day the bitcoin transaction number 100,000,000 has been made. Plus, the total circulation of coins reached incredible 15 million. This is a great sign that the digital currency’s popularity constantly grows and reaches milestones that prove that. The last million of coins was produced in roughly nine months; however, the next one is expected to longer since the reward level is expected to be halved in 2016.
Also, it’s good to know that a group of core Bitcoin developers has left the project in order to make a new virtual currency called Decred. According to one of the developers, Christina Jepson, the team’s intention is to keep the good aspects of Bitcoin and fix the negative ones with only one idea in mind – to form a product that is going to be better than the one we already have.
Bitcoin Trading for $424
Well, there’s been an obvious price drop during the weekend and if the Bitcoin was trading for $451.35 on Friday, today its worth is $424.73 per coin. This Monday the lowest price the cryptocurrency has hit is low $408.05, whereas the strongest position it noted it $428.71. Knowing that three days ago $460 was so close, these numbers are pretty negative.
The year to date change is still strong, but not as strong as it used to be; its current value is set at 35.35%. The market cap has witnessed a fall as well and now it’s under $6 B with its value of $5.97 B. The volatility is 21.01% and the volume is still low 36,870.29.
Technical Indicators vs. Moving Averages
Today there’s a very interesting situation at technical indicators and moving averages. Turns out, these two send opposing signals and it’s hard to decide which one to believe. First, let’s take a look at the technical indicators that advise traders to buy. However, even though that’s the overall signal, the situation is pretty neutral because four are pro-buy, four are neutral and three are pro-sell. For example, the RSI, Williams %R, CCI and highs/lows are neutral and those are considered as very relevant indicators.
The moving averages, on the other hand, have a more definite signal that advises traders to sell their coins. Eight out of 12 averages have a relatively strong value that predicts the Bitcoin price will fall in the days to come.
As we already said, it’s quite hard to decide what signal to take into consideration when opening your next trade. However, since the signal received by technical indicators could easily change into neutral, our advice is to expect for the price to fall. If you, by any chance, decide to bet on the opposite outcome, don’t forget to use stop loss orders.