Sunday a week ago, March 18, the price of bitcoin (BTC) sunk below $7,500 but on March 24th the price rose very briefly to just over $9,000 but the price quickly dropped below 9,000 today.
The price of bitcoin is up about 18 percent since last Sunday. During the week, bitcoin traded in a relatively narrow range between 8,000 to 9,000 for the most part.
On March 21st CEO of both Twitter and Square, Jack Dorsey said he saw bitcoin as the future of the world and the Internet. This may have led bitcoin’s price to break the $9,000 barrier briefly. However, the gain was short lived and next day the price dropped again below the $9,000 level.
Among unsettling news was that the Japanese Financial Services Authority (FSA) served a notice on cryptocurrency exchange Binance for being unregistered. Binance’s response was that it was moving to Malta.
Bitcoin opened at $8,918.74 today and managed to reach a high of $9,000.44 before dipping down to end the day at $8,535.89 substantially down from its open.
In UTC time it is now March 25th. Just over an hour and a half into the new day bitcoin is up marginally from the open at $8,584.64.
Technical analysis of bitcoin’s price movements
An article at Coindesk suggests that during the last 24 hours bitcoin’s price went further below that of the 200 day moving average and suggests that the price could drop to $8,000. So far there is no sign of that happening.
The article also notes that the prices fell below a key support level of $8,752 at 09:00 UTC on Friday which it claims could mean a deeper pullback. The relative strength index is also now in bearish territory below 50.00 and this could indicate a further drop in prices.
The article claims that many in the investor community do not expect the price of BTC to rise above $8,700 and predict a retest of the$8,000 level according to social media comments. However, if bitcoin does go above $8,700 it could retest the 200 day moving average of $9,223.
While the early trend is up on March 25, it has a long way to go just to break the $9,000 level.
Other crypto coins have gained after recent drop
Ethereum, the second biggest coin by market cap, suffered a recent low of less than $500. Although it has remained below $600 all week it has regained a little more than 17 percent from its drop. Near the close today it was about $527.
IOTA which is in tenth place in the coins listed on CoinMarketCap is up the most today at about 8 percent over a 24 hour period to when the Cointelegraph article went to press with a price about $1.40. However, by day’s end the price had declined to just $1.32.