21
Sep

Bitcoin Value Tanks as the Cryptocurrency is Defined as a Commodity

Despite the hopes of seeing the Bitcoin price breaching the $250 line and quickly recovering from the recent downfall, the cryptocurrency seems to have serious problems accomplishing this. Every several days the Bitcoin is noting a small drop of its value and currently the price is set at low $227.67.

It’s very interesting that the fall of the Bitcoin price comes after very important news hit the media – all cryptocurrencies, including the Bitcoin, were defined as commodities by the US Commodity Futures Trading Commission (CFTC). This is another step towards gaining full legitimacy for the made up currency and it should’ve provoked a jump of the price.

Nonetheless, this positive news, alongside the Feds decision to postpone hikes of interest rates, didn’t help the Bitcoin to gain back its strength and traders saw it plunge once again. However, there was one event that could’ve possibly negatively affected the price of the cryptocurrency and that’s the decision of Australian banks to close accounts of Bitcoin companies. Such news is always shaking traders’ trust in the Bitcoin, especially after 13 companies have already witnessed their accounts closed.

Price Movement in the Past 24 Hours

So, let’s take a look at the price movement in the past 24 hours and see how things changed since last week. Currently, out chart shows a Bitcoin price of $227.88, while in Friday the price was much higher at $233.77. Right there from the start we can spot the negative movement and see the sharp fall of almost six points.

The day range is varying from $226.43 to $231.83. This is, as well, worse than the results from several days ago when the Bitcoin price range was $227.82-234.52. Three other important chart numbers are year to date change, market cap and volatility and those are as it follows: -27.39%, $3.2 B and 20.07%. The volume currently is set at 22,315.11. All of these numbers are worse in comparison with Friday’s chart and clearly show that the Bitcoin is not in a good place right now.

Indicators Overview and Several Tips

The indicators show that the current MACD of -2.9212 and the signal line of -2.9859 keep the Histogram in the positive value of 0.0648. Last week the Histogram was set under the zero with a negative value of -0.0591.

The momentum value has gone far into the negative and its current value is -11.1000. This shows that despite the fact the cryptocurrency can remain over the support, it’s still not in the safe waters. The money flow index is also falling and now noted a value of 38.8929. In comparison, at the beginning of the last week it was much higher 55.6427.

Finally, the relative strength index reveals weak sentiments with its value of 41.9169; however, its value hasn’t changed too much from last week when it was slightly higher 42.3943.

The indicators and the current chart signal that the Bitcoin would probably extend its consolidation to another couple of sessions. However, traders should pay close attention to the technical indicators that reflect bearish movements. The volatility will probably stay low, thus traders can wait on the sidelines until there is a proper breakout or breakdown.

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