After a period of price fluctuations, steep falls and sharp growths, it seems that the Bitcoin has stabilised right under the $460 mark. Several weeks ago the cryptocurrency started to lose on its value and then noted a constant growth that resulted with a record high price since September, 2014.
Aside from that, the main topic these days which is important to Bitcoin users is tax. Forbes published a text that explains what American Bitcoin users have to have in mind at tax time and what information they need to provide when filling their tax report. Luckily for European traders, the Bitcoin was pronounced tax free some time ago and they need not worry about this important legal issue.
Additionally, the Feds decided to hike interest rates between 0.25% and 0.50%, a move that everyone fears could negatively affect the Bitcoin. A possible jump of the US Dollar value would most certainly weaken the virtual currency. Even though the hike continues to be a hot topic, Bitcoin traders are far more surprised by the Bitcoin’s indifference as it maintained a strong value of $456.71.
Since there wasn’t any other interesting event that could be attractive to our readers, we believe that possibly the most important information we can share with you right now is the situation on the Bitcoin price chart.
$460 Reached again; Bitcoin currently is trading for $456
Even though there hasn’t been a price improvement since Wednesday, the situation is pretty positive on our price chart. First, the trading price of $456.71 is quite good and strong. Even though it’s not over $460, knowing that a single Bitcoin is valued more than $450 is always good news.
The day’s range has significantly improved in comparison to the numbers noted last Friday. Over the period of one week the day’s low jumped from $409.5 to $446.29; that’s a growth of almost 40 points. The day’s high this Friday is $463.34, more than 25 points better than the number seen last week.
One of the other parameters on the chart that instantly caught our attention was the volatility that reached 18.61%. That’s a huge improvement knowing that a week ago its value was 16.61 and before that it had been under 16% as well.
The year to date change is moving between 45% and 46%, whereas the market cap reached $6.42 B. With such numbers on the chart, it’s probably surprising to see the volume at relatively low 46,256.39; there were times when the volume used to be over 100,000.
Is there going to be a Price Drop?
These two weeks the indicators and the moving averages were sending a strong buy signal, predicting the price would grow. They were right most of the time and hence the record high price of over $460.
However, since the beginning of this week that signal started to weaken and today only four indicators are pro-buy, whereas five are neutral; two (Williams %R and bull/bear power) are suggesting traders should sell.
A similar scenario can be noticed at the moving averages. The 10-day and 5-day SMAs and EMAs have values over $452 and all four of them signal that selling is the better option at the time. The rest of the averages, however, remain pro-buy.
These numbers might suggest that the price would remain the same in the next several days or even that it would slightly fall. Therefore, traders should be careful when opening trades and have in mind the intraday support level set at $440.