Recently, there has been a rumor which boosted the prices of bitcoin globally. The rumor was about China lifting the ban on bitcoin trading.
While this rumor surged up bitcoin prices, Huobi’s parting message finally poured cold water on the heightened expectations, causing the prices of bitcoin to stabilize at new record-high levels.
The Speculations and the Fluctuating Prices of Cryptocurrency
While many billionaires and investors, including Jamie Dimon and Warren Buffett, are constantly warning about the bitcoin bubble, well-reputed investor Bill Miller seems to think the opposite way. The funds of Miller, in this year only, have increased by up to 70% as he has invested almost 30% of his overall assets in the leading cryptocurrency – bitcoin.
The same fluctuations are also observed in the regulations of many countries towards bitcoin trading. Whereas many countries’ central banks are trying to stifle the bitcoin trading by banning it completely, the beauty of cryptocurrency lies in the fact that it cannot be controlled.
The value of cryptocurrency is decided by the market and while all these bans can make it difficult to use the bitcoin in the open market, this can never impede the overall trading activity – at least not soon enough.
So let’s just have a look at how the top three cryptocurrencies managed to hold to their values in the past month of October.
Bitcoin seemed to break out of the traditional ascending order and rebounded sharply. In the past month, the currency broke even above the line of resistance but unfortunately could not sustain it. Even though, the RSI showed a negative divergence, there is still a hope that if bitcoin breaks out of the channel, it can gain substantial momentum, achieving its objective of $6,845. Therefore, experts suggest buying the bitcoin at $6,400 with a $6,000 stop loss.
Ethereum has not been able to come out of the overhead resistance at $315 and continues to operate in a range. However, in the case Ethereum breaks out from this value of resistance, it is expected to experience a new upward trend. Therefore, we expect it to reach at $366 levels and recommend buying at $319 with a $289 stop loss.
Many traders earned an instant 22% profit in just a day on the 29th of October as they entered the marketplace at $422 and successfully exit at $518. Bitcoin Cash came out of the resistance on 28th October and has been sustaining the value so far. Next, if the BCH manages to reach $549, it might face overhead resistance but if it still breaks out, the chances are that it will reach $700 value in no time.
Conclusion: The cryptocurrency trading is a lot more speculative than the traditional stocks. While a single lift of ban can significantly affect the value of a bitcoin, the complete shift of regulations might set a new direction for the future of this digital asset.