The series of attacks on the “people’s currency” by several credible international banks should naturally cause the digital currency to witness a downtrend.
However, the FOMO (fear of missing out) and every other demand driver keeps growing stronger as the currency seems to be challenging its critiques by strutting on the path to becoming a “top of mind” global means of exchange.
So here’s a simple trend analysis of the cryptocurrency… (Grab a popcorn maybe)
The Bitcoin has advanced by about 1023.00% this year to hit $10,738 today (Price will vary at the close of trades). More interestingly, it has gained 31.69% this week to break out of the $10,000 mark and is currently daring to trade as high as $11,000 today.
To make this a little bit interesting, I’ll include and interpret some technical analysis.
The Relative Strength Index (RSI) has crossed the overbought region of 70.00 to its current figure of 85.35 – This means bitcoins are currently trading at a high price, which is quite obvious. The Bollinger bands further supports this as the Bitcoin is currently trading above the upper bollinger band of 10,039.67.
The Moving Average Convergence Divergence (MACD) shows that the currency has had an increasing positive momentum since the beginning of the week, following the negative momentum observed in the prior week.
Finally, the candlestick is increasingly bullish due to buy pressures as investors ignore the apparent risks and maintain their positive sentiments on the cryptocurrency.
Basically, all I have said is that the bitcoin is trading at a very high price given the current technical analysis. A guide to carrying out a fundamental analysis on the currency can be found here http://cryptorials.io/a-beginners-guide-to-fundamental-analysis-for-bitcoin/.
On a final note, what goes up but never comes down? Oil Prices? …Age? … Bitcoins? …
Written by Favour Usifo. Favour Usifo is an economist with a keen interest the financial markets and women empowerment.