What have we seen from the Bitcoin price so far? Well, it started a free fall until it reached a very bad price under $200. Then, it started to grow, reaching over $246 and brought back hope in Bitcoin traders lives. For a week we even saw an unusual stability that promised good price for the days to come. However, at the beginning of this week we might have some bad news for traders after the Bitcoin fell under $230 again.
Last week we talked how the Bitcoin regained stability and how it’s possible for it to breach new high over $250. Nevertheless, with the current situation such scenario seems very unlikely; at least in the next following days. After the initial determination to grow, the Bitcoin has first stagnated and now it noted a decrease.
This may be affected by the continuously unstable Chinese economy, the global market bad performance and even the decision of Russia to block Bitcoin sites over shadowy transactions. However, not all news about Bitcoin has been negative and, for example, Switzerland witnessed an installation of a Bitcoin ATM in its Capital.
Price Movement in the Past 24 Hours
So, yesterday the price was relatively positive $232.67 and the Bitcoin case seemed strong. However, things soon got dark after two hours later it fell at $228.25. Soon afterwards the Bitcoin seemed to recover and went back over $230, hopelessly struggling to cross the border of $231.Then, another fall to $227.53 started the desperate hours of remaining under $230. Finally, the Bitcoin managed to reach $230.29, but this doesn’t necessarily mean that the trend of dropping is about to stop.
These numbers formed, for now, a 24-hour price range from $226.78 to $235.06. This is much lower than the numbers noted by the end of last week when the price range was between $234.83 and $240.86. The year to date change reached negative 26.66%, while the market cap and volatility stopped at $3.22 B and 21% respectively.
Indicators Analysis
Despite price range and recent price movements, we know that various indicators cannot be ignored. Therefore, we checked how several of them changed in the last period. So the average true range (ATR) yesterday was around 0.55 and then it slightly fell to 0.1 and varied up to 0.25. Currently, it’s calmed at 0.7.
The 30-day SMA currently is set at $230.21 which is slightly lower than the 100-day SMA of $229.81. The relative strength index several days ago was reaching new highs and it was set at 51.1856 in Friday. However, after many movements, currently the RSI is 54.81, which is lower than the record of over 56, but also better than the result from three days ago.
All these indicators show that we are still facing a day or two of sideways price action and hence opening short positions right now is not the smartest thing you can do. This should be avoided despite the strong sell signal that is easily noticeable. Have in mind that if all indicators are taken into account, a consolidation above $230 is expected before an additional decline happens; if it happens at all.