Bitcoin Trading around $400; China Wants Its Own Digital Currency

Eventless days seem to be history now that almost every week we have lots of Bitcoin related happenings. Whether it’s that kind of a period which will soon pass or the increasing popularity of the Bitcoin will continue to make the currency hot topic remains to be seen. Nonetheless, today we have some interesting news to share alongside our standard Bitcoin price analysis.

First of all we would like to stress that the digital currency is currently trading around $400 per coin, with the price constantly moving one or two points up and down. The situation hasn’t changed ever since on Wednesday the Bitcoin jumped from $380 to $400 and ruined everyone’s predictions that it’s dead.

China Plans to Launch Digital Currency

Well, even though this particular information is not closely related to the Bitcoin, it certainly attracted lots of attention; the reason is very simple, a Chinese digital currency might be a real competitor of the unregulated Bitcoin.

According to CNN Money, the country was spending a lot of time studying digital currencies in the past two years via The People’s Bank of China. The institution revealed that issuing such a currency would reduce high costs of circulation, reduce money laundering and tax evasion and boost transparency. Those familiar with the Bitcoin know that some of these pros listed by the Bank of China are the digital currency’s strongest attributes.

Another thing worth mentioning is CNBC’s article on Bitcoin named “Bitcoin isn’t dead yet.” The text gives some good points on the latest dramatic situation caused by Mike Hearn and his post in which he describes the cryptocurrency as failure. CNBC did a bit of research, unlike other reputable media that simply pronounced Bitcoin dead, and explained how everything functions normally in the Bitcoin world.

The portal even interviewed Bally Silbert, who is the founder and CEO of Digital Currency Group; Silbert said that we wasn’t concerned at all that the Bitcoin might fail and with the statement calmed down thousands of Bitcoin owners and users around the world.

Bitcoin Value Remains over $390

After the price fell between $370 and $380, traders got worried that we might see further drops in price in near future. Nevertheless, the Bitcoin mysteriously jumped back at $400 Wednesday afternoon and it’s still managing to stay there after two days.

As you can notice on our Bitcoin price chart, at some point in the past 24 hours the worth of a single coin reached $415. Nevertheless, before the previous day was over the cryptocurrency fell for several points. Few hours ago the Bitcoin went under $400 and currently is trading for $397.10. The day’s high is $412.22, whereas the day’s low for now is $394.98.

Even though there’s a slight change in the situation, the signal received from technical indicators and moving averages is still sell. However, now we can notice that two indicators (STOCH and Williams %R) show that the Bitcoin is being oversold, whereas three averages (5-day, 100-day and 200-day SMAs) are signaling traders to sell.

These seemingly unimportant changes might be actually a sign that the Bitcoin is gaining on strength and it might get back on its feet pretty soon.

Share this

Share This