Bitcoin Prices Are On The Rise; What’s That Mean?
During this past Friday, bitcoin prices were lower than $3,000 which intrigued the market since it hasn’t been this low since August 5th when recovery prices were $3,875. The reason why prices dropped is due to the exchange shake-ups in China which created panic selling around the market. However, couple days later the Bitcoin price went back up and it gained 33% in three days.
The reason the cryptocurrency regained power so fast could be due to oversold technical conditions or to the lack of concern regarding China’s exchange ban not interfering cryptocurrency trading.
However, the news still affected the market and bitcoin prices went low as $2,980 and recovered to a range from $3,500 to $3800.
Despite the raise, there is still concern the the prices of bitcoin are out of danger and will present stability throughout the following months. The price action analysis states bitcoin is on the way to having its mid-July high records again which were around $5,000 and having a breakout. The daily chart shows that the curve below the 100-day moving average didn’t last long since the relative strength index was oversold.
There is still indecision on the market since the daily chart presents back-to-back Doji candles, a candlestick pattern. If there is a positive candle, the effect will be reverted and there should be a break above 4,250 there’s going to be a rise for sure which would lead to new records in bitcoin. The rise in price would suggest more stability to the market since there will be more liquidity.