Originally published by AxiTrader
I don't love it but I don't hate it.
Would I be a buyer at 10,000? No.
But it charts nicely so while I expect pullbacks I also expect them to be supported. That has to judged against the reality that any market which goes vertical the way #BTC has substantial pullbacks at some point. As Bitcoin has regularly in this run to USD10,000.
Key for me is that Blockchain and (Bitcoin) are like the internet and internet stocks were in the late 90’s. Obviously going to change our lives but the metrics and LT business model was a little uncertain.
I think of BTC as a currency with limited money supply and increased demand – you end up with its value increasing.
So the launch of the CME future is the big test for the market and for price levels.
If the CME BTC futures is a vehicle for current holders to liquidate then supply comes to market and prices can fall substantially. If, as many guess, the CME BTC future adds demand then prices can continue to rise. So the big risk looming is whether the price can navigate the start of this CME future. But if it simply mainstreams BTC and drags more players in on the buy side then with a fixed supply of coin that could drive prices higher.
As I've said above and written recently - Bitcoin charts really well. In many ways its "chartability" - if I can call it that - reminds me of the way Asian currencies first traded when the pegs were let go during the 1990's region crisis. So it's tradable.
A 38.2% garden variety retracement of the last move would see it pullback to $8437 - or there abouts given this is a rapid surge. And there appears to be really important technical support - recent top and bottoms - at $7800/8000.
Have a great day's trading.