The past several weeks have been very interesting to Bitcoin traders who witnessed a steep fall in the price of the Bitcoin and then a significant jump as well. Everyone well informed knows that the Bitcoin fell under $200 mid August, just so it could come back to life and reach record $246. We are far from the best days of the Bitcoin when it traded for $400-1,000, but these latest happenings are good news nonetheless.
Some are quick to say that the Bitcoin is gaining a dollar a day, even though in the last couple of hours we can clearly see that the price has fallen a bit. The today’s average for now, according to our Bitcoin price tracker, is set at $236.88, which is a bit smaller than the $238.85 average from two days ago.
The day trading range is starting from $236.46 and reaching up to $246.17. This is definitely better than the trading range noted the days before. The year to date change is negative 24.42%, whereas the market cap is relatively still at $3.33 B. A small decrease is noticed in the volatility that has fallen from 22.49% to 22.11% during the past two days.
Short Chart Analysis
The fact that the crypto currency hit highs of over $246 earlier today and continuously trades for no less than $236 is a very promising sign for the Bitcoin. The currency has managed to breakout the Bitcoin price above the 30-day SMA and the 200-day SMA of $250.4500 can act as an immediate resistance.
The money flow index fell to 71.3592 after reaching 73.5319, but it still manages to remain in the high of over 70. The relative strength index is also staying in, more or less, neutral bias noting a value of 53.2387. It has to be pointed out that even though the Bitcoin has maintained its strong price these days, it still is trading under 38.2% Fibonacci retracement of $243.84. However, this is not that worrying information and it’s, honestly, quite expected in times like this.
So, what’s to be done? Well, have in mind that the next couple of trading sessions the volatility will probably remain pretty low. Also, be careful as the Bitcoin is facing more and more resistances. Trying to guess when the Bitcoin will reach its new target of $260 is not really recommended, since now the smartest move is to wait and see what happens next.
Chinese Are Exiting the Yuan with the Help of Bitcoin
Back in July, we have talked about how the Greek crisis had boosted the growth of Bitcoin value, which at the time reached pretty high $267.84 on 1st of July, 2015. Possibly, the same scenario may be repeating since numerous Chinese citizens are trying to exit their yuan by purchasing Bitcoins. Numbers show that the majority of Bitcoin transaction in the past several weeks included people from China as the country is trying to maintain its economic stability.
Currently, the country is suffering an economic crisis that could easily make serious damage to people’s personal wealth. Even though the government has implemented through capital measures to prevent its citizens to trade yuan for more stable currencies, there is no way for them to stop the Bitcoin conversion which is untraceable and instant.
Thus, as Chinese authorities seem uninterested in preventing Yuan to Bitcoin conversion, we can expect the demand for Bitcoin to increase. This, hopefully, will positively affect the crypto currency and help it get back on its feet very soon.