We’re rounding up this week back on familiar grounds, with the price of Bitcoin close to the $710 mark. It seems that the trading world is recovering from the news about Trump winning the US presidential elections, as the mass panic that triggered the Wednesday boost has subsided.
Just like we talked about in our last update, when market turmoil like this happens it doesn’t last for long unless there isn’t an additional catalyst to push it further. But now, since the dust has cleared and we are once again at a standstill, the question remains where will the price go from now?
Bitcoin at Standstill; Close to $710
After breaking out the $715 resistance on the expense of the US dollar, Bitcoin has reversed back in the same day, finding support where resistance once stood. The week’s high was on Wednesday morning, when the value went up to $734.84, while its lowest point of $711.02 was reached nearly 24 hours after, on Thursday morning. Ever since yesterday, the price chart has remained a flat line, with the value sticking close to $713 without significant changes.
Our market volume chart shows the same loss of momentum, with the trading volume gradually decreasing along with the price, following the breakout of two days ago. Where on Wednesday the volume reached $133 million, it is now at $65,084,600. As traders already know, stagnant trading volumes don’t normally lead to drastic changes, but the decrease in size may hint at further tests of the current price.
As to our technical analysis, the situation is quite tough to predict, with our indicators sending an overall buying signal which isn’t that strong. Out of 12 technical oscillators 4 are pro-buy while 3 are pro-sell, which makes the situation only slightly in favor of the buyers. The moving averages show a more favorable direction, with 10 out of 12 averages being pro-buy. Currently, the market seems to be inclined toward buying, but it also shows signs of seller pressure.
The Stochastic has already reversed from “overbought” to being pro-sell, which hints at a possible pull backwards. On the other hand, the SMA 100 is climbing over the SMA 200, indicating an upwards path is more likely. The $715 floor is the likeliest path of the Bitcoin, for now, but a strong shift in trading winds can make another correction beyond this range. Keep your eyes on any changes.
Mcafee Warns about Bitcoin Security in Smartphones
Now that Trump headlines are starting to fade from the world of Bitcoin, the key concern once again seems to be security. Speaking to International Business Times at the Blockchain:Money conference in London, world-famous cyber security expert John McAfee said that the world of Bitcoins may “crumble” if there is no radical reorganization of security, which he believes to be the biggest problem facing the cryptocurrency.
According to McAfee, hackers will eventually figure out this problem and leave the Bitcoin world in “chaos” if no drastic changes are made, since the cryptocurrency has no existing security. The key concern, as he sees it, is that nowadays the majority of people manage their money through their smartphones, which in the case of Bitcoins is a disaster waiting to happen.
Since smartphones collect information that can be used by marketers, McAfee believes that the same information facilities can be used by hackers to circumvent strong encryptions and steal Bitcoin from users. Or as he puts it, he only needs your phone number and five minutes of time to transfer any Bitcoins from your wallet.