Bitcoin Price Stabilises; Traders Still Not Sure What to Expect in the Future

The Bitcoin gave us quite a show these several past weeks. It was very unstable, constantly changing its price and reaching new lows. However, a turning point was reached after the price fell below $200 and since then things seem to be doing good for the crypto currency. The Bitcoin noted a jump and managed to finally stabilise. This was a real relief to traders, even though they are still not sure what’s to be expected by the Bitcoin in the future.

Some positive trends were noticed thanks to the demand of Bitcoin in countries with unstable economies. We already talked about the positive effect the Greek crisis has on the Bitcoin and now the same is happening because of China’s shaky market. Also, the fact that Barclays announced accepting Bitcoin for charitable donations can’t be ignored. Additionally, UPS said that the Bitcoin could open up an array of new markets such as African countries that have a very limited selection of payment options. All this information acts in favour of the crypto currency and promises bright future ahead.

Daily Price Chart Overview

Several days ago the Bitcoin jumped to $246 and raised hopes of constant price growth. Even though that failed to happen, for now we can stay positive that the price won’t fall down again. After the obvious pattern of falling and increasing, we are now in a period when the Bitcoin is in a state of stability, which is always welcomed.

There are some changes in the price that varies for about six points, but mainly it remains between the same borders from few days ago. So, in the past 24 hours the average Bitcoin to USD price is $239.65, whereas the day range goes from $234.83 to $240.86. The conclusion from these numbers is that the average price has increased, whereas the day range has fallen. Two days ago these same stats showed $236.88 average price and $236.46-246.17 day range.

Three other important aspects of the chart include year to date change that remains in the negative 23.68%, the market cap of $3.37 B and the volatility of 21.68%. Hence, we can notice improvement in all three numbers in comparison to the ones calculated earlier this week.

Numbers Analysis and Tips for Traders

Having seen the latest price range of the Bitcoin, we are ready to move on to some serious business. For example, the Fibonacci retracement of 38.2% of $234.84 is a factor that shouldn’t be ignored. Furthermore, the monthly average convergence divergence is still erasing losses with the MACD at -2.3088 and the signal line at -5.4478. The histogram, on the other hand, is in the positive 3.1390. All these numbers are working in favour if Bitcoin price.

The money flow index has noted a small decrease in its value and from 71.3592 it calmed at 56.5244. Another slightly decreased number can be seen in the relative strength index which is 51.1856, down from 53.2387 two days ago.

With everything analysed, we can say that the short-term perspective of Bitcoin price is pretty hopeful. Nevertheless, it is recommended to keep it tight and create stop losses below the support of $235. The 200-SMA of $250 is yet to be reached, but traders shouldn’t expect for this to happen too fast. Finally, the volatility is probably staying low in the next few sessions according to the technical indications that we have already reviewed.

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