Bitcoin price started moving in a very favourable direction and reached record highs for 2015 over the past several weeks. However, that period is probably over now that the price is once again falling. Even though the falls are not as dramatic as the jumps we witnessed last week, they’re still a relevant reason to worry.
The latest drop of 13% brought the price per Bitcoin under the $350 mark and got traders believing that soon the cryptocurrency might fall under $300 as well.
Aside from the bad news related to the price, there are actually two very interesting events that may positively affect the Bitcoin in the future. First, Wedbush Services changed its 2016 Bitcoin price prediction and from $400 it was updated to $600. Secondly, it was reported that Microsoft wants to make Bitcoin easier for banks and further explore the possibilities of mixing cryptographic security and block chain.
Sharp Price Fall Noted In the Past 24 Hours
Two days ago we had a trading price that varied between $350 and $400 and we even said the Bitcoin had stabilised. However, in the past 24 hours there’s been a steep fall and the current trading price per coin is relatively low $321.63. Naturally, when we say low we compare to the impressive values reached last week.
Besides the obvious trading price drop, traders can see that the day’s range is much lower than it used to be. Therefore, the daily low is only $303.96 and soon may fall under $300 threshold. The daily high is decent $378.93. With these values, the year to date change has fallen to 2.5%. Those that regularly read our articles probably remember that at a certain point the year to date change reached amazing 40%.
During this period we can spot an increased volume of 252,409.09, while the volatility is yet again between 17% and 18%. The market cap fell under $5 B and now is set at $4.52 B.
Indicators and Averages Now Signal Traders to Sell
Another change that took place these several days is the shift from strong buy to strong sell seen in both technical indicators and moving averages. It seems that bulls are losing their lead and the intraday support level has fallen to $300; as a result, traders are now advised to sell or at least wait for better times to buy.
Several indicators that traders have to have in mind are the RSI with its value of 38.110, the MACD set at -10.630 and the Williams %R of -64.857. The ROC is also signalling to sell with a value of -3.857.
Nine out of 12 moving averages tell traders to sell. Only the 5-day SMA and EMA and the 10-day SMA suggest buying as a better option. However, the 200-day and 100-day SMAs with respective values of $372.78 and $361.48 can’t be ignored.
Since the bulls are still leading the bears, though have a weaker influence than before, the possibility to see the Bitcoin on the rise again is not excluded. Thus, the intraday resistance level is set at high $500 and traders should open their next trades very carefully.