It’s been a wild week for bitcoin! On Monday, October 7th, and this morning increased the rate by more than 13 percent of the time. And, this morning, at seven o’clock in the morning, dropped the price again by more than 5 per cent, in an hour’s time. You can say what you want to do, but to follow the bitcoin exchange rate, it is nice and exciting.
What led to the rise and decline of the week? And what can we do for next week bring? Axel explains it to you, along with all the latest news from this week:
Breakout from the trend line
The chart below shows the price of bitcoin in euros. Every candle on the chart represents four hours:
In the past few weeks, the price of bitcoin, several attempts have been made to increase. However, the peaks were once again down. You can see the sloping trend line.
On Wednesday, the 9th of October was the time of the price of a single bitcoin up with a lot of noise due to the oscillator. That moment you see on the chart, as indicated by the blue dot. Bitcoin has increased at more than six per cent, in three hours time!!! But it took a long time for this celebration that is not.
The Moving Average remains a tough resistance
So why the sudden drop? It seems as if the bitcoin price is struggling around the 200-day Moving Average here as well. This is the moving average, you can see in the chart below, as indicated by the green line. Each and every time, as bitcoin is attempting to do to this line to come out when the weather.
This resistance is evident, if we have the graph (expressed in united states dollars to watch. The graph shows what’s out, each and every candle represents one day:
Bitcoin is in no man’s land
What is the price of bitcoin go? In order to get a clearer picture we will zoom the graph to the next. You will see the bitcoin price by the end of 2017 and through to the present day.
As the stock price moves have to be close to a major zone, which is between 7,700 euros and for 7.900€. In the past, this area was alternately to the support (green arrows) and resistance (red arrows) have been.
What does the zone do for a bitcoin? That is, in the next few days.
The old trend-line coming together
But it is not only the resistance and support, it is very interesting. It may also be that bitcoin is on the lookout for an old trend. Between February and the end of march, the course is located along this trend line is up and moving. It may be that this trend line is supporting bitcoin.
At the top you can see the downward trend line where a bitcoin in the past few months, the trouble has been. Breaks down that the price at the end of this line? This is a very positive sign. That’s not an increase, in the direction of the old top-of-11.500 euros of a difference.
A reduction is also possible if the central zone, however, a strong resistance turns out to be. In the most pessimistic scenario, it may be bitcoin, then descend in the direction of about 5,500 euros.