Bitcoin technicals: Yikes! Bitcoin pushes toward $6K
Dow index up to >23K but bitcoin is also pushing a new milestone at $6K
The Dow cracked 23K this week and is up 17.6% this year, but bitcoin is also approaching a key milestone at $6K. For it, the key milestone is 6K. The gain for they year? About 520%!
Earlier this week, the price declined about 9% intraday, but since then the cryptocurrency has moved from $5109 (near the 200 hour MA level - green line in the chart below), to a high today at 5996 (it is making new highs while I type). That's $887 bucks or 17.3%.
The move higher yesterday pushed above the 100 hour MA (blue line in the chart above), and later in the day I wrote the following:
The move higher - yesterday and today - has seen the price move back above its 100 hour MA (blue line).
- Stay above that MA line at 5584.76 and the buyers remain in control. The all time highs will be tested.
- Move below and the rally higher is running out of steam and we could see a move back toward the 200 hour MA at 5304.77 (and rising).
The price stayed above the 100 hour MA. The buyers remained in control and they pushed the price higher (see chart above).
The move higher has taken out the $5866.03 high from Friday last week. That is now close risk for longs. Other risk includes the earlier high for the week at 5785.29 (see 5-minute chart below), and the 100 hour MA at 5599.63. Move below those levels and the buyers are starting to lose more control.
As mentioned in previous posts, trading the crytocurrency requires paying attention to the technicals. The volatility is just too great. So the smart traders out there in cryptotrading, will tend to define and limit risk against key technical levels. To ignore the clues opens yourself up to potentially big swings.
So be careful. Be disciplined and listen to what "the market" is saying.
But one word for bitcoin....