Experts believe that the improvement and growing popularity of Ethereum is possibly harming the Bitcoin, which has been constantly falling in the past several days. A week ago the cryptocurrency was trading for $456; however, today we can see it with a really low value, in comparison to the one noted last Monday, of $442. Only in the past 24 hours the price per coin has noted a decline of 0.15%.
We mentioned on Friday that the situation wasn’t too positive for the Bitcoin, especially with the strong sell signal received by the indicators. The volume has jumped a bit, but considering the fact that could mean a price improvement as much as it can mean a drop in value, this decrease isn’t exactly a surprise.
What we find the most interesting, however, is the fact that there haven’t been any particularly bad events related to the cryptocurrency. Quite on the contrary, most of the information we found was pretty positive and yet the Bitcoin has dropped.
Investors Trust Bitcoin More than Unstable Paper Money
As we already mentioned, most Bitcoin-related events have been positive lately, even though the price doesn’t reflect that. Wall Street Journal dedicated a whole article on how investors trusted Bitcoin more than unstable paper money and kept their wealth in the cryptocurrency. Kanishka Sukumar’s testimony is featured in the text in which the 24-year old consultant says in times of financial turmoil keeping money in Bitcoin would be his preference.
On the other side of the world, in India more and more people are paying their bills and shop online using Zebpay. Thanks to Zebpay’s services, Bitcoin has been embraced by India’s citizens; according to numbers provided by the platform, the number of users is doubling every month.
Possibly the only negative and at the same time relevant article about the cryptocurrency in the past few days was published on Forbes. The author of the text claims that the Bitcoin is failing, but predicts long life of the technology behind it – the blockchain. However, with so many similar claims in the past and price of over $400 per coin, we think it’s too brave to pronounce the cryptocurrency dead yet again.
Strong Buy Signal amid Price Drop
As usual, the Bitcoin is taking unexpected turns and the technical indicators seem to do the same as well. Therefore, despite the sharp decline in value, the majority of the indicators are signalling traders to buy. To make everything even more confusing, the volume is pretty low in comparison to the high number noted on Friday. Therefore, it’s really hard to imagine that the Bitcoin has the power to grow today or tomorrow.
Nevertheless, our price shows that the price in the past few hours has been moving for several points up and down, mostly around the $442 threshold. Therefore, we saw it at $422.11, just like we saw it at $441.97 too. With the decline, the market cap has remained under $7 billion ($6.88 billion) and the volume is set at $42,697,200.
If we briefly go back at the technical indicators and the moving averages, almost all of them are pro-buy. Only two indicators are neutral and three averages are pro-sell. Additionally, the STOCHRSI and the Williams %R show signs of overbuying, even though the cryptocurrency has been constantly declining.