Bitcoin seems to be consolidating after a quite uneventful week marked only by a few changes in the cryptocurrency’s USD value. After achieving a small jump near the end of the weekend, Bitcoin is back at $3,600 again while interest in trading the coin is lower than when compared to previous weeks. And judging from the current market indicators, it doesn’t seem that there will be a significant price increase coming up anytime soon.
According to Bloomberg, Bitcoin’s behavior over the past days hints at a price stabilization and, quite possibly, a new short-term rally. Olga Kharif, an analyst at the online magazine, believes that the coin’s value could be consolidating, as indicated by the GTI Global Strength Technical Indicator which is currently sitting at 35.6 – the lowest value since December 2018.
Another signal that works in Bitcoin’s favor is the fact that the cryptocurrency broke through the lower band limit of the VERA signal before shooting up to trade over it, which reportedly implies that there might be a new but short rally coming soon. However, how true will these fact-based predictions turn out to be, remains to be seen.
Coinbase Improves Institutional Support for Bitcoin
Since yesterday, Coinbase – one of the biggest cryptocurrency exchanges on a global scale – went live with a few new changes that will add even more support for crypto-traders, Forbes reports. From now onwards, Prime and Pro customers of the exchange in Asia, UK, and Europe will be able to use wire transfers from outside of the United States to fund their accounts, while some customers will also be given access to the OTC trading desk of Coinbase which went live in the US in November 2018.
This change will allow non-US customers to trade without holding a bank account in the country which could in turn add some serious trading volume to the exchange, according to Andrew Robinson, a Coinbase exec for the EU, Middle East, and Asia markets. The trading desk is also expected to bring in plenty of new users as now foreign investors will be able to trade coins directly with the exchange only charging a commission for managing the trade.
Reportedly, both changes were made to prepare for a “bright future” in some of the targeted markets, particularly in Asia where Coinbase believes there will be surge in interest over the next years.
Trading Market is Pro-Sell
Not much has changed in terms of Bitcoin’s value since our previous price update with the coin reverting back to where it was a week ago. The highest price the cryptocurrency reached during the past seven days was on Saturday, when Bitcoin briefly sold for $3,751.95, while the lowest price point was hit yesterday afternoon, when the coin dropped down to $3,559.14.
One thing worth noting about the past week is that the trading volume remained consistent, staying close to $5 billion for most of the time. Not much has changed even today when the 24-hour volume is currently sitting at $5.27 billion. The same can be said for the market capitalization, which is still near $63 billion.
According to our technical analysis, the trading market is quite bearish, with 6 out of 12 technical indicators and 11 out of 12 moving averages sending a “sell” signal. The SMA 100 is also below the SMA 200, showing that the downward path is the one of less resistance. If the bearish mood continues, Bitcoin will likely be headed for a test of the lower support zone of $3,100. But if not, we could see that anticipated short-term rally.