After skyrocketing to $500, the Bitcoin finally slowed down and stabilised below the $400 mark. The cryptocurrency has taken everyone by surprise with its incredible jump of more than 70% in a single month, without an apparent explanation of such turn of events. However, it seems that the overbuying condition finally affected its value and today we can see a trading price of $367.42.
As the Financial Times is trying to find a legitimate reason why the Bitcoin is surging, the US government has been selling the last Bitcoins seized during the prosecution of the online black market used for buying illegal goods called Silk Road.
Nevertheless, what’s everyone’s interested in is what’s to be expected in the days to come. Highest price fluctuations usually are noted during the first days of the week, but that doesn’t necessarily mean that over the weekend there won’t be any unexpected jumps and drops.
Day’s Price Range Between $350 and $450
As we have already said, the current trading price of Bitcoin is $367.42 and it’s dramatically lower than Wednesday’s $500. Nonetheless, this price is still much better than the lows between $200 and $250.
The daily high and low have noted a drop as well; today the highest value per coin was $445, while the lowest was a bit below the $350 mark or $348.03. This price drop resulted with a sharp decrease in the year to date change as well. Therefore, today it’s settled at 17.09%, while only two days ago it was rushing towards 50%.
The market cap has fallen as well to $5.16 B from $6.5 B. The only thing that seems to maintain its stability during these crazy weeks is the volatility. Currently, its value is set at 17.58% and for quite some time now it’s been moving between 17% and 18%. The volume has calmed too and now has a much lower value of 199,124.93.
Indicators No Longer Signal Traders to Buy
If during the last couple of weeks all or most of the technical indicators were suggesting that buying Bitcoins is the best option, today we can see that the situation has changed and now the signal traders get is to sell.
The 14-day RSI is 42.826 and even though it left the overbought territory, it still suggests that traders should avoid buying at this time. The MACD went back into the negative and has a value of -13.860, whereas the ROC is -6.355. Another technical indicator that is in favour of selling is the Williams %R with a value of -61.116. Furthermore, besides the fact that bulls still seem to be in control, the bull/bear power is set at -12.4070 and also signals traders to sell.
It’s interesting to see that the moving averages at this particular time are not very helpful since 50% signal selling and 50% signal buying. Both 200-day SMA and EMA are in favour of buying with their values of $340.57 and $348.83. On the other hand, the 100-day SMA and EMA are respectively set at $372.88 and $372.86; thus, signal traders to sell.
At this moment it’s very hard to guess where the Bitcoin price will go next. The current drop may be just a slowdown before further jumps, but it also may mean that the Bitcoin has spent its power and now it will stabilise at its current value. What will actually happen we’ll find out next Monday, when another price fluctuation is expected to take place.