Bitcoin Technical Analysis 11/6/15 – Volatility Strikes

Bitcoin has been in a bullish uptrend over the past few days with a clear and strong defining trend set by the positive markets. Many reasons have been attributed to the current rise, but the fact that china has unofficially recognized the validity and use of Bitcoin has been the one main reason behind the current price increase. As bitcoin has risen to over 100% in just a mater of weeks, many believe that this may be a price range destined for the short term, but with current price graphs and investors telling a different story lets look at the current state of Bitcoin markets.

The past day has been slightly bearish in terms of market sentiment as the market corrects itself after the significantly high bubble, which was reached yesterday which was prices of Bitcoin edge close to the $500 mark.  While prices of $480 were seen these were not meant to stay; over the past 24 hours we have seen a considerable drop in bitcoin prices by over $80. A decrease of over 15% is a considerable drop, but these prices have been held for a considerable number of hours. This has been clearly seen in many of the 6 hours graphs as the market hovers around the $390 – $406 mark remaining fairly stable.

Speculation –

While Bitcoin prices appear stable at the moment, it seems that the current volume being traded may not be enough to stabilize the price of the coin under the current market cap. Cryptocurrency investors had initiated dismissal on the current price rise, though reasonably others believe that the combination of capital controls in China and the fact many can directly convert their fiat from any bank account to Bitcoin are indications of a steady climb. The company, BTCC has also been one of the pivotal factors to contributing to the current price increase.

BTCC Now Accepting Direct Bank Deposits
Nov 02, 2015

Recent bitcoin price increases have reignited enthusiasm in buying bitcoin. BTCC is confident this trend will continue. As such, we are pleased to announce that we now accept direct deposits.

Customers now need only log in, click on “Account,” then “Fund,” and then select the “Bank Deposit” option to fund their BTCC accounts through their bank accounts. All customers who have Chinese bank accounts will be able to make direct deposits through ATM transfers or online banking.

As of now, I would say purchase with caution and restraint as the bitcoin volatility expressed by markets seems extremely unpredictable. However, come tomorrow and prices hold tight then it may be a surer sign that stability is here to stay.

 

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