Business Magazine

Bitcoin is Looking Wobbly Again.

Posted on the 10 September 2018 by Andyepb

Home > Bitcoin, Stock Market > Bitcoin is looking wobbly again.

Bitcoin is looking wobbly again.

Bitcoin is looking wobbly again.
We did get the bounce I predicted in my last post, and it went further up than I forecast, verging on overbought territory (Relative Strength Indicator - RSI > 80). The price then dropped again as would be expected, but didn't make a new post-crash low, which was a positive sign and I was hoping that bitcoin may have turned a corner. It drifted back up after that, but, a week ago was looking like it had run out of steam, so I was expecting a bit of a dip. This has happened, though the price fell more sharply and slightly further than I anticipated, cancelling out the positivity and suggesting that there could be further to go in this drop. (Short-term corrections tend not to exceed nine or ten per cent and this drop was around thirteen per cent). It is usual, after a crash like we have had this year, for the drop to end when buyers capitulate and sentiment turns very negative, but this hasn't happened yet with bitcoin. Consequently, I think the price could drop substantially from here, perhaps below $1,000, as there is a strong band of supporters (the HODLers - Holders On for Dear Life) who will take a lot of pain before capitulating. It is important to remember that, although the bitcoin price has fallen by more than two thirds since it peaked in December, it is still above where it was a year ago, so any longer term investors will still be in profit at the moment and so still not too worried. It is also worth noting that it is less than two years since bitcoin regained the $1,000 level, so this level is by no means out of range.

Bitcoin is looking wobbly again.
The FTSE did continue to drift upwards for a while, as I suggested in my last post, but, in the last few weeks has fallen, despite support from a falling pound (which makes foreign earnings more valuable to FTSE multi-nationals). I haven't discerned any particular reason for this being attributed by the commentariat, so I think it has to be put down to general Brexit anxiety. There have been comments about the relatively high likelihood of a no deal exit, which appear to have spooked the market. There is significant support at 7,200 points, so I think the index may well bounce there, but I don't have any strong feelings about what is likely after that as it is too dependent on politics.

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Big Food Giants Manipulate Public Health Policy in China

    Food Giants Manipulate Public Health Policy China

    Coca-Cola is at it again. As soda sales decline in the United States and Europe, beverage companies look to emerging economies like China for growth. And, it... Read more

    The 15 January 2019 by   Dietdoctor
  • Jewellery for a Precious You

    Jewellery Precious

    Jewellery is always close to a woman’s heart. It completes her look and boost confidence. Considering the changing trends in jewellery fashion, it becomes... Read more

    The 15 January 2019 by   Dr.jenifer Sayyed
  • Rajshri Productions’ Next Is A Film On Friendship | Hum Chaar | Trailer

    Abhishek Dixit’s debut feature film Hum Chaar is a Bollywood film made under the banner of Rajshri’s film. Hum Chaar is written and directed by Abhishek Dixit. Read more

    The 15 January 2019 by   Themoviean
  • Saint Paul the First Hermit

    Saint Paul First Hermit

    Today is the feast day of Saint Paul the hermit. This is a sweet and delicate Oatmeal Bread topped with rolled oats and naturally sweetened with agave. Saint... Read more

    The 15 January 2019 by   Veronica46
  • Irupathiyonnaam Noottaandu | Teaser | Pranav Mohanlal | Arun Gopy

    Arun Gopy’s Irupathiyonnaam Noottaandu is an upcoming Malayalam action-drama feature film starring Pranav Mohanlal and Zaya David in the lead roles. Read more

    The 15 January 2019 by   Themoviean
  • A Year Of Body Positivity

    Year Body Positivity

    Last January, as I sat there on New Years eve all set to make the same old resolutions I've made year after year for as long as I can remember, I realised how... Read more

    The 15 January 2019 by   Sparklesandstretchmarks
  • Garden Bloggers Bloom Day – Jan 2019

    Garden Bloggers Bloom 2019

    Euphorbia rigidaWhen I went out to take the photos for this blog post I was surprised at how much was in flower dotted around the garden. Read more

    The 15 January 2019 by   Patientgardener