Bitcoin may not technically be a “stock” but the virtual currency has been in the news recently. While you were sleeping, Bitcoin surged to $145 per one bitcoin.
But, later in the day, fresh off of the news that Bitcoin wallet company Instawallet was hacked and shut down indefinitely, Bitcoin started falling…and falling…and falling, bottoming out at $113.
But what can we predict about Bitcoins? According to the chart below, from bitcoincharts.com, Bitcoin could be back on the rise.
You can see the double dip in the chart, where the price dips down, goes back up close to the 10-point simple moving average (the solid line in the chart), and then goes back down. This implies that Bitcoin has bottomed out and could be going back up.
Also, Bitcoin is currently trading above the simple moving average, which implies that the price of a bitcoin is on the rise. It’s even past the 25-point moving average, which means that the price could rise dramatically.
Bitcoin may be a buy right now, but be careful: the virtual currency is really volatile and a very risky investment, since there is no central bank supporting the currency.
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Tech Stock of the Day: Bitcoin