Right when we thought the Bitcoin has solved all its issues and headed towards $500, the cryptocurrency went on rocky road again. Its value has been slowly declining ever since and even though over the weekend there’s been a slight improvement, it’s fallen for $10 in comparison to Friday’s price.
To illustrate, last Friday a single coin was trading for about $420, whereas on the last day of February the price per Bitcoin was much higher $440.
However, we can’t say that this price drop hasn’t been expected since last week we predicted this would happen. The current Bitcoin related events aren’t helping its cause either, since global media can’t stop writing about the many issues the cryptocurrency is dealing with at the moment.
Funny enough, the biggest problem of the digital currency is its popularity, which resulted with too many transactions that overwhelmed the platform. Nothing of this would’ve been felt by the end users unless the average transaction time hadn’t been prolonged to 43 minutes.
At least, according to Fortune, the blockchain technology is still doing well and its popularity is ever growing.
Price Chart Overview
Well, it’s always interesting to see how the price has been moving in the past 24 hours in situations like this one. First, let’s note that the current trading price is set at $409.69, but it constantly moves 2-3 points up and down. The lowest value the Bitcoin has seen today is $404.15. If this tempo goes on, we can probably expect to see the currency under $400 very soon. The day’s high for the past 24 hours is currently set at $411.64, whereas for the day is $410.71.
The volatility seen today is 48.55%, which is almost the same with last week’s 49%. Therefore, there hasn’t been a drastic change here. The market cap used to be $6.46 billion, whereas now it’s $6.27 billion; therefore, we can see that the market capitalisation of the Bitcoin has been falling.
The volume in the past 24 hours ($85,366,800) has slowed down in comparison with the numbers witnessed last week ($93,305,300); nonetheless, it’s better than the one from a week ago when the volume was set at $72,588,300. If this movement is taken into consideration, the price might stabilise for a bit or at least note small changes.
In general, if you pay attention to the 7-day graph of price movement, it’s more than obvious that the Bitcoin has been decreasing and the trend doesn’t seem to show signs of reaching its end.
Strong Buy Signal; Is It Relevant?
Unlike the price chart whose situation is more negative than positive for the Bitcoin, technical indicators and averages send a strong sell signal. Nonetheless, we would say that this current signal shouldn’t be taken for granted because it’s highly unlikely to see the cryptocurrency grow in the days to come.
However, if you’re interested in their signal whatsoever, you should know that eight indicators (RSI, MACD and ROC included) are pro-buy, whereas three are neutral and show conditions of overbuying. Similarly, eight averages (5-50 EMAs and SMAs) are sending a buy signal, whereas only four are pro-sell.
Our ultimate advice is to trade with Bitcoin very carefully at the moment and avoid making rush decisions. The issues may lead to further price drops, but also the positive predictions seen at the indicators may turn out true. Whatever you decide to do, always have an exit strategy and be prepared for a movement in the opposite direction.