For the past two days the Bitcoin seem to be one of the main topics of interest after so many interesting thing associated with it happened. Let’s take a closer look at the events that are expected to affect the Bitcoin in one way or another as well as see how the price moved.
First, it has to be pointed out that the Bitcoin is still trading under pressure and we could see bears making efforts to break the floor of $220-225 yesterday. However, this behaviour was much more obvious in Thursday when the world was expecting the US Fed decision on hiked interest rates.
Banks Express Interest in Bitcoin Technology, USA Puts Interest Rate Changes on Hold
So, basically the two most important events these days that were making headlines for quite some time now are the banks that want to work with Bitcoin technology and USA’s plan to hike interest rate. Both of these affect the Bitcoin in a different way and both are very important.
The one event that can have a very positive effect on the Bitcoin price is the announcement of nine reputable banks that are interested in adopting the Bitcoin blockchain system. According to the banks – Barclays, UBS, JP Morgan, Goldman Sachs, State Street, Credit Suisse, Commonwealth Bank of Australia, Royal Bank of Scotland and BBVA – this system is hard to fool; also, it could make deals more transparent and speed up trading systems. Not surprisingly, such positive words are very important to the reputation of the Bitcoin and may increase the demand of the crypto currency.
Another positive event, however, was the presentation of a new cutting edge hardware which is expected to generally stabilise and even boost the price of Bitcoin. The hardware announced by BitFury is expected to be of a 16 nm ASIC and consume as little as 0.06 J/GH. Thus, this could result in a hash rate 2 EH/s by the beginning of 2016 that could push the Bitcoin price up to $400.
Finally, the decision of the US government to postpone any changes in the interest rates is yet another good sign for Bitcoin’s future, for now. The Federal Reserves decided that this decision can be left for 2016 and till then the Bitcoin won’t be in any way affected by this event.
Chart and Indicator Analysis
So, our chart currently shows the following numbers in the 24-hour period. The price is set at $233.77 while the price range is between $227.82 and $234.52. Year to date change settled at -25.50% and the market cap reached $3.29 B. Volatility and the volume are 20.28% and 40,086 respectively.
Two days ago the results showed price of $227.37 and year to date change of -27.53%. The market cap was $3.19 B, while the volatility 20.58%. Finally, the volume two days ago was steadily falling and at the time were around 29,000. Thus, it can be noticed that there is a positive trend for now.
The indicators show that the 30-day SMA is $231.4197, which is limiting the growth of the Bitcoin. The MACD is still under the Signal Line, thus the Histogram is in the negative as well. These three indicators have the following values: -2.9249, -2.8658 and -0.0591. The MFI and the RSI are not giving significant info with their values of 55.1856 and 45.8449.
So, what we would suggest is not calling for buying just yet. Even though the Bitcoin managed to avoid, or more precisely delay, a breakdown, it’s still a high-risk trading opportunity. Therefore, traders should be patient until the support levels rise.