We always knew that not everyone was going to be as welcoming to the Bitcoin as European countries and the USA. Therefore, we’re rarely surprised to find out that a government or a central bank disapproved the use of this cryptocurrency that provides anonymity and fee-free transactions.
The latest news of that kind is the revelation that Kenya Central Bank decided that digital currencies are not a point of interest and thus chose not to use them in its financial dealings. Furthermore, the bank cautioned Kenyans to avoid using any virtual cash, such as the Bitcoin. In addition to this event, representatives from a French right-wing political party filed a motion seeking power to regulate and possibly ban Bitcoin activities.
However, not everything has been negative. For example, an article published on Reuters reveals that the Bitcoin might reach record highs in 2016. According to the text, in 2016 the mining reward would probably be halved and that would naturally boost the price per coin as the supply would significantly reduce. Bitcoin experts claim that the price might even double once the news about the halving hit the public.
Current Trading Price Set at $440; Day’s Range Notes a Fall
Currently, the trading price of the Bitcoin is a bit improved than the one we saw two days ago. However, as it can be seen on our chart, the thing that should worry traders is the day’s range, which noted a significant drop.
So, if the trading price used to be $345.56 on Monday and the day’s range was between $425.4 and $460.54, today we can see a trading price of $440.05 and day’s range from $433.74 and $443.3. This means that Bitcoin has lost its power to go over $445 for the time being.
The year to date change, nonetheless, is still pretty strong at 40.23%, whereas the market cap remains over $6 ($6.18 B). The volatility is still growing as well; its current value is 19.93% and the likes to go over 20% are pretty big. A noticeable change in value can be spotted in the volume, which today has dropped at 34,941 from 101,476 in the beginning of the week.
Price Improvement May Happen Soon?
Our favourite technical indicators today signal that there might be a price improvement very soon. We have to believe them since they rarely make any mistakes.
Many values, in comparison with Monday’s values, have changed and now a total of seven indicators suggest traders to buy. Taken into account that zero indicators consider selling as a better option at the moment, the overall signal is strong buy. There are, however, four neutral indicators including the 14-day RSI (54.392) and the STOCH (53.537).
A similar, yet weaker, signal is received by the moving averages. The ones that include a wider period of time (100-day and 200-day SMAs and EMAs) recommend traders to sell. However, all the other averages point out that, at the moment, Bitcoin enthusiasts should buy.
It’s hard to tell what exactly is going to happen this week. There are signs that the Bitcoin might grow, but also it seems that the currency has lost its power. Whatever the case, on the long run all things point that 2016 is going to be a very important year for the Bitcoin and those willing to invest in it should probably buy now and wait for the price to grow in the months to come.