After dropping by over $1,000 in a single day last week, Bitcoin has been trading sideways around the $9,500 range this weekend. The past couple hours have been exciting for the market though, because the Bitcoin price broke upwards and tested $9,800. It’s clear that the market will test the $10,000 level once again, as it has multiple times in the past. BTC is trading at $9,767 on Bitstamp at the time of writing.
When it comes to Bitcoin news, Coindesk released an awesome report about a Bitcoin mining farm BitRiver that are operating and flourishing in Siberia, Russia. The company is based in the city of Bratsk, and operates out of the Bratsk hydroelectric center. The cold temperatures and low electricity costs are the perfect conditions for running a Bitcoin mine. Moreover, the city fully supports the mining company and its operations. Now that Bitcoin is back at the $10,000 level, Bitcoin mining is a lot more profitable than it was back in 2018. Even though the difficulty increased, the price increased much faster.
In other news, according to court documents there are some developments regarding Craig Wright and Kleiman’s court case. In the latest ruling, the judge ordered Wright to pay Kleiman 500,000 Bitcoin! That’s almost $5 billion worth of coins at the time of writing.
In response to the news, many traders speculate that the market will experience significant downwards momentum as the Kleimans will have to offload a large amount of BTC in order to pay for estate taxes that can run as high as 40%. However, the caveat here is that the taxes would be calculated at the date of Kleiman’s death. Bitcoin was worth a lot less back then, so the taxes would be a small fraction of the $5 billion settlement.
Relative Strength Index: RSI is at a healthy 55 points at the time of writing. It’s coming down from a peak of 80 points a few hours ago. Looking at RSI’s behavior the past couple days, we can see it has been out of bounds only 3 times. That’s a signal that the market is relatively stable, and may continue trading sideways.
Bollinger Bands: Looking at the BBs, we can see the price is right in the middle of the upper and lower bands. Moreover, we can see the deviation between the two bands is decreasing. This also signals a sideways trading market, especially with the recent breakout.
Volume: The volume is relatively low at the time of writing. However, there is still enough market activity for Bitcoin to be able to move up or down a few percent. Looking at the chart, we can see Bitcoin previously moved around $100 in either direction with similar amount of volume.
The RSI and Bollinger Bands are both signalling a sideways trading market. The low volume only confirms the indicators’ sentiment. As such, my prediction is that Bitcoin will continue to trade sideways at least through tomorrow. With labor day here, US volume is going to be minimal so unless China makes some big moves the price should remain stable.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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