A person who is a new investor in digital coins might look at the recent price increase of Bitcoin to the $9,141 mark and get quite excited. The price jump was a 3.5 percent increase for the day. However, a person who has been around even for a few weeks would know that just last week, Bitcoin traded at $9,300. A new trader would then wonder what the reasons are for the swings in value.
For the day of November 8, Bitcoin ranged in value from $9,265 to $8,804.88. According to cryptocurrency analysts, these swings are getting predictable. Peter Schiff, who is a vocal critic of Bitcoin, suggested that at $8,800, it is still highly overrated. He is calling for a dump in value and volume.
Overall, Bitcoin's prospects are looking up. According to the heavily-used Bollinger Bands, the Bitcoin price has been hovering around the moving average. That is around $8,900. When its value is so close to the moving average, traders might think that the odds of it falling to $7,800 are the same as it rising to $10,130. However, this is not the case.
Several factors suggest that the value will rise, not fall. One of those factors is the anomaly in Bitcoin price actions relative to the CME gap. Unlike other coins, Bitcoin seems to have a rapid recovery from losses. This could be due to a low weekend trading volume.
Another factor is that weekend trading volume is likely to increase. Yet another factor to look at is the Moving Average Divergence Convergence. This is a good one to watch because it follows alterations in the value trajectory more closely. When this moving average crosses into bull territory, traders get an urge to buy. Litecoin is a good example of this in action.
The same tool could be used to look at Ether's volume and value. Ethereum is setting up for a value around $285. This would boost its market capitalization by 30 percent. Bitcoin will have to defend itself against the $7,800 level if that happens, because a bear market drop could follow it.