Bitcoin Notes a Drop as SEC Files Charges against a $20 Million Bitcoin Ponzi Scheme

Over the past two days the Bitcoin noted a slight fall in its value after it reached the $380 mark on Monday. After a period of constant growth and then a period of decrease in value, seeing the cryptocurrency around the $350 threshold is neither good nor bad.

Before we move on to the price chart and technical indicators, we would like to mention two interesting events. Unlike the rest of the world that is excited by Mark Zuckerberg’s daughter, we’re thrilled to find out that FamilyMart decided to accept Bitcoin. FamilyMart is a Taiwanese convenience store that made a deal with BitoEX to make it possible for customers to make Bitcoin payments. This is groundbreaking for the country that only a month ago considered banning Bitcoin from use within its borders.

However, on the other side of the world, in the United States, there’s been a serious accusation against a Vermont man and his two companies for operating a giant Poinzi scheme. Reportedly, over 10,000 victims invested at least $20 million in these two Bitcoin mining companies before the SEC decided to file charges against the man.

Bitcoin Price per Coin Fell at $350

The current trading price of the Bitcoin is $351.72, which is pretty lower than Monday’s $375.56. Naturally, the drop affected all other components such as the day’s price range, the year to date change and the market cap. Therefore, the day’s range is between $347.12 and $377.92. The year to date change fell for about 7 points to 12.08%, whereas the market cap slipped under $4 B at $4.94 B.

The volatility is continuously falling with a really slow pace. Therefore, after being stuck between 17% and 18% for quite some time, it first well under 17% and today we can see it under 16%. Its current value is set at 15.99%. The volume in the past hours was over 80,000, but now fell at 53,414.9.

Another Drop is Likely to Happen?

Both technical indicators and moving averages tend to correctly predict the future of the Bitcoin. Therefore, taking a look at them today signals that there’s going to be another drop in Bitcoin’s value since all of them recommend strong sell.

Unlike Monday’s numbers that were pretty neutral, this time seven out of 11 technical indicators are pro-sell. Of the other four, three are neutral and only one signals traders to buy. Some indicators that caught our attention are the 14-RSI and its 40.453 value as well as the negative MACD of -3.340.

When it comes to moving averages, the situation is pretty similar with 11 out of 12 signalling strong sell. The only exception in this group is the 200-SMA of $347.62. All other simple and exponential averages are over $350 and consider selling as a better option than buying. For example, the 200-day EMA is set at $350.64, whereas the 100-day SMA has a value of $361.10.

Taking into account the signals by the indicators as well as the recent drop in value, we must warn our readers that another price fall might take place as soon as tomorrow. Therefore, we advise you to open trades very carefully, place stop loss orders at $345 and constantly follow if there are any dramatic changes on the chart.

Share this

Share This