It can be said that the hopes of a quick revival of the Bitcoin have disappeared after its price fell and remained under $230. In the past 24 hours the price managed to breach the $230 marker and reach $231.1; nevertheless, that’s far from the expectations to jump to $250 or more.
Obviously, the upward biased price structure has been ruined and the indicators have turned bearish again. The dominance of the bears is reasserted after the bulls failed to maintain their support at $235. These occurrences are a sign that the Bitcoin is moving in a bad direction as well as highlights the possibility of another strong decline.
A close look at the price chart reveals a quite unfavourable trend of instability. Furthermore, when the price starts moving, it’s moving downwards. The current trading price on our chart is $227.37 and the price average has fallen to $226.17-231.1. Only two days ago the price range reached a maximum trading Bitcoin price of higher $235.06.
The year to date change is still in the negative and now it’s -27.53%, worse than the same stat two days ago which was -26.66%. The market cap is set at $3.19B, while the volatility is 20.58%. The volume on our chart has been slowly decreasing in the past 24 hours and from approximately 35,000 it fell to slightly over 29,000.
Technical Indicators That Shouldn’t be Ignored
We never fail to take a look at the technical indicators that are quite important when it comes to planning your next move. So, the MACD is showing negative values with both signal line and histogram falling under the zero. The MACD value is currently set at -3.1516, while the signal line is -2.9788. The histogram value is -0.1728.
The money flow index is still giving strong results with its value of 55.6427, whereas the RSI is 42.3943. If you remember the number from two days ago, which was 54.81, you can notice that the RSI dropped as well. The momentum indicator is rapidly decreasing reaching -9.7900.
These numbers clearly show that sellers completely overpowered buyers, thus placing the Bitcoin in a very bad position. It can be concluded that the level between $220 and $225 is Bitcoin’s last hope, since any price under this zone will have a severe consequences for the crypto currency and the market cap will probably note a sharp fall as well.
What Events Can Affect the Price of the Bitcoin?
It’s important to be aware what events can affect the Bitcoin price either positively or negatively in order to react accordingly with the situation. We have already mentioned that the crisis in China resulted with an increased demand of Bitcoins and, as the country stabilises, we can expect this trend to slowly disappear.
On the other hand, the Russian decision to make the Bitcoin illegal and block Bitcoin sites is definitely a bad sign. However, the effect of this is yet to be seen as the country gradually forbids access to various Bitcoin sites.
The final event that currently can affect the Bitcoin negatively, unless something else doesn’t happen in the meantime, is the US Federal Reserve’s policy decision to hike interest rates. If such proposal is passed, then the dollar will most likely gain strength and stability. Such scenario would be quite positive for US stocks, but extremely bad for the price of the Bitcoin.