In our previous post we’ve mentioned that the technical indicators and the overall Bitcoin situation were signaling that there will be further drops in value of the cryptocurrency. Therefore, the latest price decrease wasn’t something that surprised us. Today, we saw the Bitcoin fall under $370, but it managed to jump and go over $380 nonetheless.
Neither of these values is positive, especially since everyone’s hopes for 2016 were to see the currency grow. Plus, the bad performance in terms of price was accompanied by two relatively discouraging news published on leading portals.
Bitcoin Helps Child Abusers; New Hampshire Doesn’t Want Taxes Paid in Bitcoin
As dramatic as it sounds, The Guardian has published a whole article claiming that Bitcoin and other digital currency are partially helping child abusers to remain unidentified. In the text the author mentions how PayPal and Visa transactions were used in order to track and capture paedophiles in the past. However, Bitcoin and its “friends” that enable anonymous transactions, according to the analysis, were making it possible for these individuals to stay under the radar.
As if the previous article wasn’t enough to hurt Bitcoin’s reputation, the New Hampshire House of Representatives decided to reject the proposal of accepting Bitcoin tax payments. This means that the hopes of citizens that are fans of the cryptocurrency to be able to pay their taxes in Bitcoin are, for now, dead.
One good news, however, came from Nasdaq. The portal dedicated a whole article on the blockchain and its use beyond Bitcoin and finance. The text points out a paper by the Managing Director of the International Monetary Fund Christine Lagarde, which focuses on virtual currencies. According to her, such currencies have strengthened financial efficiency; also, they reduced times and costs of transactions.
Strong Buy Signal; Should You Trust It?
Two days ago the Bitcoin’s price was moving around $394, whereas in the beginning of the week it was even higher (at $400). The slow, yet constant fall seems to continue; thus, in the past 24 hours the Bitcoin was moving mostly around $380. The current trading price agrees with that number too with its value of $382.86.
The chart reveals a scary low of $364.29, but also a relatively good high of $383.37. The volatility today is set at 63.39%, whereas the market cap remains under $6 B with a value of $5.80 B. The volume in the past 24 hours reached $74,427,800 and the price change during the period is positive 0.10%.
In terms of technical indicators and moving averages signal, this week’s end is pretty pro-buy. Seven indicators (RSI, ultimate oscillator, STOCH and etc.) are suggesting traders to buy. Only two indicators are against this signal, whereas the rest two are neutral.
At the moving averages, seven are pro-buy and five are pro-sell. The 200-day SMA and EMA, 100-day SMA and EMA and 50-day SMA signal traders to get rid of their coins. All the others are recommending you to invest in Bitcoin.
So, should you trust this positive signal or not? Well, taking into account that the currency is in the hands of the bears and that the US Dollar is doing pretty well, we advise you to be careful. As longs as the growing US economy has a positive effect on the national currency, the Bitcoin will probably be negatively affected and hence fall. If you decide to go with the buy signal anyway, using appropriate stop loss orders is highly recommended.