Bitcoin price analysis: Jammed in 18–months range, Chinese to hold BTC privately
|- Bitcoin volatility stuck below $100 according to CoinDesk’s BPI.
- The Chinese were warned against the risks of digital assets like Bitcoin and not from private holding.
Bitcoin has been stuck in the tightest ranged in a period of 18 months. The volatility is at its lowest in the 1 year 8 months trading session. Besides, a look at the daily volatility chart shows levels below $100, particularly on October 19. Bitcoin has been stuck below this level according to the data on CoinDesk’s Bitcoin Price Index (BPI).
The trading on Friday has been slightly eventful with the bulls taking control of the price. Even in the middle of the low trading activity, Bitcoin below the support at $6,400 yesterday. A support was formed at $6,380 and the bulls drew a line in the sand prevent a dip to the next support target at $6,370.
The bulls increased their grip on the price today; Bitcoin price corrected higher taking back the support at $6,400. Unfortunately, the bulls lost steam around $6,415 resulting in the current bear correction that is seeking balance above the moving averages. The RSI is heading south, which means that $6,400 support is under threat.
In other news, an arbitration body in mainland China has released a ruling that states that Bitcoin (BTC) is indeed a legally protected item of value. The case was published on the WeChat account belonging to the arbitrator. The arbitrator, Shenzhen Court of International Arbitration ruled in case where the plaintiff had given digital assets to the defended for management purposes for a set period of time. However, the defendant failed to hold the other end of the bargain and did not return the assets in BTC, BCH and BCD to the plaintiff leading to the case filing.
“There is no law or regulation that explicitly prohibits parties from holding bitcoin or private transactions in bitcoin, [only warnings to] the public about the investment risks. The contract in this case stipulates the obligation to return the bitcoin between two natural persons, and does not belong to the [Sept. 2017 ban],” the arbitrator ruled.
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