Just when everyone got extremely worried about the Bitcoin and its declining price, the cryptocurrency found strength to grow a bit. Thus, the weak results from the beginning of the week are slightly improved midweek after the Bitcoin noted a jump of several dollars per unit. Meanwhile, there were also some interesting happenings that may help us get a clearer picture of what to expect in Bitcoin’s future.
After it was trading around the $220 line for quite some time, we can see that in the past 24 hours the Bitcoin rocketed up to $232. Currently, it manages to stay around the $230 borderline; thus, traders can only hope to see this positive trend alive in the days to come.
Bitcoin Patents, Licences and Regulations
So, before paying close attention to the price chart, we would like to see how the world of Bitcoin is doing. One of the most interesting events is the decision of Coinbase to file applications for nine Bitcoin patents with the US Patent and Trademark Office. The patents include hot wallet for holding Bitcoin, instant exchange, personal vault, tip button and several other amusing concepts.
In other news, what also helps the Bitcoin to become regulated and accepted more widely is the New York State’s financial regulator issue of its first Bitcoin licence. The licence should ensure consumer protection, cybersecurity guidelines and compliance with the recommendations. The BitLicence was given to Circle Internet Financial, a startup that intends to offer a Bitcoin mobile payments system in addition to the already existing one that works with US dollars.
Finally, there have been some talks that Africa considers regulating the Bitcoin. Its largest economies, such as Nigeria, already accept payments in the virtual currency and thus legal experts as well as e-commerce entrepreneurs are demanding regulations.
Each of these separate events is very positive for the cryptocurrency since they show that the Bitcoin is taken very seriously by authorities. Therefore, we can expect it to be better accepted and more commonly used in near future.
Chart Structure and Indicators
After taking a look at the latest happenings in the world of Bitcoin, let’s see what the chart is signalling. First, the price is significantly higher that it was in Monday. Currently, it’s set at $229.14 and holds a day range between $224.12 and $231.71. The year to date change is -26.99%, which is better than the -27.39% from two days ago.
The market cap is somehow keeping it’s stability around $3.22 B, whereas the volatility has calmed at 19.84%. The volume is constantly moving up and down, reaching 30.183. In contrast, on Monday it was much lower 22,315.
When it comes to the indicators, it’s interesting to notice how the 30-day SMA and the 100-day SMA have finally met at $229. The relative strength index also has been rising and falling between the 45 and 50 lines; nevertheless, its current value on our chart is 49.72.
To sum up, a break over the $231 line will put us towards a medium-term target of $235. In order to have an effective risk management, it’s smart to put a stop loss somewhere around $230. On the other hand, if there’s a break under $228, then $225 short-term downside target enters the game. A stop loss on the $230 would be once again a smart move.
However, whatever happens, we probably won’t get more than two or three dollars’ worth action today.