Another Friday and another price jump, that pretty much summarises everything you need to know about today’s situation on the Bitcoin price chart. However, the technical indicators are suggesting traders to be careful and avoid being fooled by this significant jump.
Aside from the Bitcoin’s value improvement, there haven’t been any entertaining events that deserve to be mentioned. An article that did, however, catch our attention was published on CBS News. According to the information provided there, next year could be a banner year for our favourite cryptocurrency. The analysis points out a poll that showed 37% of respondents believe Bitcoin price in 2016 would be between $500 and $1,000.
Even if that doesn’t happen, it’s nice to see that many people have faith in the Bitcoin and would bet on it. Public opinion is always important when it comes to things like the Bitcoin; the more people use and accept it, the bigger the chances to be recognised by governments and companies are as well.
10-Point Jump in Two Days
Only two days ago the trading price of the Bitcoin was around $440 and today we can see it settled above $450. More precisely, this Friday the Bitcoin’s worth per coin is $451.35. However, the thing that we find more important that the actual price surge is the day’s range, which notes some strong numbers. The day’s low is $441.98, while the day’s high is $457.89. This shows that the Bitcoin got a bit of its power back and almost hit the $460 line.
Naturally, such a price improvement affected the year to date change and boosted its value to 43.83%. The market cap increased as well and reached $6.43 B, after its value on Wednesday was lower $6.18 B.
For the first time in quite some time now, today we can see the volatility over 20%. In the previous weeks the volatility was mostly stuck between 17% and 18%, while at a certain point it fell under 16% as well. However, today the volatility is 20.43%. In comparison, a worrying sign is the low volume of 29,636, which might be suggesting that the price is going to decrease during the weekend.
Indicators Not Favourable Towards the Bitcoin
Today, the technical indicators are not that favourable towards the Bitcoin and most of them signal traders to sell. The RSI (44.244), STOCH (41.254) and ROC (-0.949) are three out of seven indicators that consider selling to be a better option; this means that they predict that the price of the cryprocurrency will stumble in the days to come.
The MACD (0.240) and the ultimate oscillator (55.401) are the only two indicators that signal traders to purchase coins, whereas two other (ADX and ATR) are neutral.
The situation is a bit more complicated at the moving averages whose overall signal is neutral; six of them advise trades to buy and six advise traders to sell. It can’t be really said which one to believe. The moving simple and exponential averages that cover a longer period of time (50, 100 and 200 days) are pro buy, whereas the 5, 10 and 20 day SMAs and EMAs are pro-sell.
Having all these details in mind, traders might find themselves on a crossroad. It’s really tricky to make a good call right now, but we are more inclined to believe that the price will fall or remain the same rather than grow. Nevertheless, as long as you don’t forget to place stop loss orders at $435, we think you’re good to go.