Current Performance of Bitcoin
The price per unit BTC has steadily been increasing since May 2020. The 200-day MA is priced at $8,992.61, while the short-term 50-day MA is trading at $10,446.43, indicating a significant upside movement over the short-term. Given the spot price of Bitcoin at around $11,800 per unit (August 20, 2020), the momentum is certainly on the side of the bulls.
Significant volatility in the global financial markets, spurred by the coronavirus pandemic has driven interest in safe-haven assets such as gold, and massive multi-trillion dollar stimuli by the US, and European countries are drumming up interest in Bitcoin.
Large-scale numbers of retail investors are now switching their attention to cryptocurrencies, and this is evident in the sharp rise in pricing across the board. A key technical indicator of expected price movements, Bollinger Bands clearly displays current trends. The upper Bollinger Band is currently at $12,263.65, and the lower Bollinger Band is $11,130.35.
The center band is priced at $11,697. Clearly, the current price of Bitcoin sits in the top half of the bands, indicating that momentum is still on the bullish side. Should the price of Bitcoin drop beneath $11,697, or the moving center line, traders and investors may start going short on the cryptocurrency.
As a rule, cryptocurrency is known to be the most volatile instrument on the market, more so than Forex trading. Unprecedented increases or decreases in pricing or possible at the proverbial drop of a hat, making this a tough market to call. The current trends tend to indicate an ascending channel on BTC daily charts, particularly over the course of several weeks, or months.
Bitcoin’s recent breakout above $12,000 + and subsequent retracement indicate a mix of profit-taking and skepticism about the fundamentals of this financial instrument’s trajectory. Nonetheless, futures trading remains largely bullish on the back of current trends.