Overbought Bitcoin Remains under $580

It’s everything but boring to be a Bitcoin trader these days. The cryptocurrency continuously acts unpredictably and moves up and down even when there aren’t any explanations for such movements. These past weeks it was attractive to see the Bitcoin first stabilise under $500 and then jump over $550 in less than two days.

This drove global media crazy and for quite some time the world’s most popular digital currency was a hot topic at portals such as The Fortune, Yahoo Money and Forbes. However, the hype seems to have calmed down over the past two days thanks to the fact that the Bitcoin managed to remain between the $570 and $580 marks for more than 24 hours.

Nonetheless, that didn’t stop popular sites to make predictions of the possible future movements of Bitcoin’s value; most of them believe the price is more likely to grow rather than fall. Those predictions solely can act as a boost on the price chart.

Country Regulations May Result in Bitcoin Price Jumps

Even though the number of Bitcoin-related articles has been drastically lowered ever since the price had stabilised, we found two interesting analysis that focus on the cryptocurrency’s value and what makes it grow. An article by Daniel Jennings published by the popular magazine Seeking Alpha finds connection between rigid currency policies and Bitcoin price improvements. Namely, the author mentions Egypt as an example where the government announced plans to punish black market money changers. With these restrictions whose goal is to stop leakage of the Egyptian pound on the black market for US dollars, people may turn to a safer and simpler alternative – the Bitcoin.

Nasdaq, on the other hand, went a step further predicting that the cryptocurrency may soon breach the $1,000 line. The magazine names the US Election as the main reason for their prediction because, as the author explains, this election seems to be historic. However, the historic part isn’t about the fact that a woman is running as a candidate for a major party, but because there’s a high level of dislike and distrust for the both major candidates Trump and Clinton. This situation could get people worried about the future of the US dollar and hence throw them looking for alternatives like the Bitcoin.

Strong Signs that Bitcoin is Being Overbought; Price May Drop

One thing that always happens after a significant price surge is people rushing to buy coins and hope for their value to keep growing. That’s how the cryptocurrency becomes overbought and its value starts to drop. We’re mentioning this because this morning there was several technical indicators that showed signs of this occurrence, which means the price could decline if the trend continues. Aside from that, most indicators (seven out of 11) and moving averages (seven out of 12) are sending a strong buy signal. This, in contrast, suggests that the price will increase during the day.

In terms of price movement in the past 24 hours, we can spot on the chart that the value has dropped for 0.16%. The current trading price is $578.72, with the second-best day’s high being $576.22. The lowest value per coin noted in the past 24 hours was low $568.49; nonetheless, the price has been over the $570 threshold for the most of the day.

Despite the stabilisation, the market cap is still over the $9 billion mark. The volume, however, has noted a drop in value, which perfectly mirrors the overall slowdown of the Bitcoin; its today’s value is $60,180,900.

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