Bitcoin Stabilizes But What’s Next?
Ben Myers | Sep 01, 2014 10:28AM ET
After remaining stable above the $500 level for the last week of August, the Bitcoin (BTC-eUSD) price has dived down through the $500 level as we enter September. The Bitcoin price fell to a low $472.53 this morning, regaining ground, trading at $484.07 at the time of writing.
By offering Bitcoin and Litecoin services beyond trading, CRXzone, an exchange based in Singapore, hopes to attract an international customer base. Litecoin has recently seen drastic declines to $5 and below, however, the exchange’s CEO thinks that Litecoin will survive the current downward trend. He attributes the trend to leverage trading. CRXzone plans to carry out audits every half-year or every quarter.
Also, capitalizing on the fact that over 90% of the United Arab Emirates (UAE) population are foreign nationals, igot has launched the first Bitcoin exchange in the UAE. With 1 million Indian national in the UAE and sent over $70 million to India in 2012, the remittance market is tantalising for the Australian Bitcoin group.
The 4 hour chart below shows a descending triangle pattern forming. After the downward trend that started in early July, the price has bounced off the lower edge of the triangle. The price could rise to around the $510 mark before declining again below $500 to around $480. If the price action breaks out of the triangle pattern, the downward trend would be resumed and the $455 level that was tested a fortnight ago could be tested again.
At the hourly timeframe, the technicals are bullish. The parabolic stop and reversal indicated the start of an upward trend this morning. The relative strength index (RSI) is above 50, indicating a strong upward trend, which may continue if the RSI remains above 50. The faster moving average in the MACD is moving away from the slower moving average, indicating bullish momentum.
The chart below shows the Bollinger bands for the hour time frame. The price action is approaching the upper band, suggesting that the price will decline towards the middle band at the $479.69 level. A huge downswing occurred earlier this morning, shown by the Bollinger squeeze in the chart.
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