Recent matters to do with Bitcoin and other cryptocurrencies has left everyone short of breath. The price volatility alone is enough to give some a heart attack. Some pundits are now suggesting the price has bottomed out. Just this morning, 8.00 am CAT (Central African Time), bitcoin price fell from $6550 to $6355. There has since been a recovery to $6470. With such price swings are we really out of the woods? I am not so sure! Massive price fluctuations over every weekend now seem a given and is likely to continue.
Looking at the today's’ chart, we see that the CCI (Commodity Channel Index) has been slowing down with a figure of -53.6550. It was almost twice this figure during the weekend at -103.9557. Trading volume looks healthy indicating the sorts of price movement we are currently experiencing. RSI (Relative Strength Index) is at 44.6515, which is also quite healthy. As for the clouds (Ichimoku), the tekan sen has gone below the kijun sen which is flattening out. Both the tenkan sen, kijun sen, and price candles are under the cloud telling us things are still bearish. How long it will remain this way is anyone’s guess.
I suppose we can look forward (not!) to more volatility in the future. By now we should all be used to that. Volatility is unfortunately here to stay except someone comes up with a stable coin that is beyond outstanding. And as for certainty, that’s another thing. No one really knows what direction prices will take. As I have said before, this could be due to both animal spirits, and market manipulations. I have often joked that the price of Bitcoin will change if Vitalik Buterin changes his favourite coffee brand. Maybe this will stop one day, and we can have some peace, but then again, your guess is as good as mine.
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