It’s quite surprising and confusing to see the Bitcoin remaining stable for such a long period of time. Even though the signal received by technical indicators and moving averages constantly changes and one day it predicts price growth, whereas the next day it predicts drop in value, the cryptocurrency doesn’t seem to follow the lead.
Two days ago everything was supporting the expectations that the Bitcoin might grow a little and yet today we can see that it fell for several points instead. Currently, the trading price per coin on our chart is $394 and on Monday Bitcoin’s value was around the $400 mark. This slight, but evident, price decrease was followed by a relatively eventless period.
Our favourite digital currency was mentioned in Forbes Magazine by their contributor Laura Shin, who prepared an analysis of strategies that could help the Bitcoin go mainstream. Some of the strategies she mentions are Bitcoin play, enterprise play and infrastructure play. She gives some fair points not only on the main idea of the post, but on Bitcoin in general and it’s a pretty good read.
Another interesting analysis published these days is the one by Vox that focuses on a potential problem Bitcoin users might have in the future. The text highlights how Bitcoin payments started to take longer time than usual and claims that the reason for that is Bitcoin network getting too crowded. Thus, the magazine asks the question whether it’s smart for the Bitcoin to go mainstream and grow so quickly since that could hurt some of its main advantages.
Price Dropped for about $6
When we say that the Bitcoin is being stable, we aren’t meaning that literally. The cryptocurrency is constantly moving up and down, but it’s not making any drastic value changes of 10+ points on the chart. Therefore, if two days ago the price of a single coin was relatively high $400, today it fell at $394 i.e. for about $6.
Just before the start of 27th of January the price was a bit higher $396.27 and the Bitcoin even reached a day’s high of $396.76. Nevertheless, these numbers were reality only for a short period of time, since the currency dropped under $395 pretty soon. The day’s low is worrisome $390.82, but luckily it didn’t go below $390. The current trading price of Bitcoin on our chart is $393.80.
The volume has gone down as well; today its value is lower for approximately 3k and it’s set at 5,502. The volatility is $63.63, whereas the market cap dropped under $6 after quite some time maintaining its high value. The market cap at the time of this writing was $5.97 B.
Sell, Sell, Sell
Well, there’s not much to say about the situation seen at the technical indicators and moving averages. Both are sending a strong sell signal, with all moving averages agreeing that traders should get rid of their coins. The 200-day SMA and EMA are settled at $396.38 and $398.46, whereas the 100-day SMA and EMA have respective values of $395.62 and $396.16.
When it comes to technical indicators, we can say that eight of them are pro-sell and only three are neutral. The RSI today has a value of 43.736, whereas the MACD is in the negative 0.160. The 14-day STOCHRSI, with its value of 1.843, shows that the Bitcoin is being oversold; that could result with additional price drops in near future.