Even though the Bitcoin saw its price plunge and hit a record low of less than $200 per contract, the crypto currency now is back in the game as its price started to steadily grow. The latest good news includes a constant positive movement as well as a 19-day high that went over the long awaited $240 borderline. Various exchanges noted a slightly different high, but the most notable one was incredible $246 per contract. The greatest price reached on our site was also impressive $241.62.
The declining global markets had a severely negative effect on the unstable Bitcoin and in August the currency first noted a 13% fall to $220. Soon afterwards, it slipped below $200 and made headlines all around the world. However, since that scary fall, the Bitcoin managed to climb back towards $230 and stayed there for the several past days. This is, in fact, the most stable one-week period the Bitcoin has had since May.
The Current Trend of Price Growth Shouldn’t be Taken for Granted
Nevertheless, this current euphoria about Bitcoin price may not necessarily mean that the currency can soon reach prices common for its best days. Right after the $240+ price was reached, the Bitcoin once again stumbled down to $237.68. Fortunately, it didn’t fall under $230, because that would’ve been really bad for its stability. Once it reached the low, it quickly recovered and traded for price range between $237-240. Today, the Bitcoin to US dollar average is $238.85 with small changes. The day price range according to our Bitcoin price tracker is $233.65-$242.16 for now, whereas the year to date change is still negative 23.84%. The market cap has noted a growth and reached $3.36 B, while the volatility also has increased to 22.49%.
Therefore, despite the growth rising up the hopes of a strong Bitcoin, many experts warn that the current trend shouldn’t be taken for granted. The uncertainty is high, even though the bulls managed to defend the crucial weekly support and see its hard work pay off. The 5.29% price growth might be just another false signal of recovery and until the global market isn’t back on its feet, traders have to be very careful when making their next Bitcoin trade.
What to Have in Mind before Making a Trade?
Here are the supports and the resistances that you have to have in mind when making decisions that can cost you a lot or earn a lot.
First of all, let’s take a look at the Bitcoin chart structure that reveals a strong resistance near $260-270. Short-sellers lacked patience and hence the bulls seem to won. The moving averages shows 30-day SMA of $239.6230, still lower than the 200-day SMA of $250.4675. That can be seen as the next hurdle for bull traders. Another important aspect, always, is the moving average convergence divergence, which at this point is soaring over the signal line. Nevertheless, both the signal line and the MACD latest values are in the negative. The money flow index has seen a jump to 73.5319, after it was set at 54.0633 last week. Finally, the relative strength index managed to increase from last week’s 37.6093 to 51.6032 and go over the 50-mark.
Taken all this into account, it can be said that Bitcoin is expected to head and possibly reach the $260 line. If that happens, however, a tremendous selling pressure would probably take place. Thus, the previous resistance of $235 should act as a support and you should keep exiting on further gains. Naturally, stay well informed and pay attention to price changes before making your next move.