7

Coinbase plunge takes price from $7800 to $6600

On Friday, a large 5000 BTC order on Bitstamp (about $39M at the time of the order when the price was trading around $7800), sent the price of bitcoin tumbling lower as the broker scrambled to fill the order. According to reports, the order was filled by Bitstamp at $6200 ($31M value at execution - that's some slippage folks).  That is a 20% fall. Ouch.

Bitstamp tweeted at the time:

"A large sell order was executed on our BTC/USD pair today, strongly impacting the order book. Our system behaved as designed, processing and fulfilling the client's order as it was received."
The low price on Coinbase was dragged down with it. but bottomed at $6600, saving customers who may have had stops below that level from liquidation. However, plenty of positions were likely cleared out on the crash.  It also is a reminder that risk has three parts: 
  • Market Risk which is the risk that the price will indeed move from normal buyers and sellers battling it out in the market
  • Event Risk from news stories or economic releases that influence the "story" of the instrument
  • Liquiidity Risk which is the risk from lack of buying or selling support.  That liquidity risk can be broker related (like this case seems to be), and/or just inherent in the "market" of a particular instrument. 
When ranking bitcoin on the risk-o-meter, it can have "Red hot" levels in each of those types of risk.  Traders have the choice to take it on, and live with it, or choose not to.  

At the very least the risk profile, should at least give traders a "cause for pause" on whether to even enter the bitcoin waters.  If ok with sticking a toe in, it should also give pause as to how deep should you go in.  That is, because of the high risk, don't have it as your one and only investment/trade.  That just does not make sense.

Other ways to hedge risk is to be cognizant of the technicals.

Coinbase plunge takes price from $7800 to $6600
Looking at the hourly chart above, what can you notice about the trend move higher?

The blue line - which is the 100 hour MA - was broken on April 30, and the price moved higher.  The first move higher was just a fraction of the eventual overall gains (to $8388), but that first run higher did go from $5158 to $5823 or 12.89%. The price did correct below the lagging 100 hour MA on May 6 and again on May 8th (for a single bar), but dips were very modest and short from a time perspective.  Nevertheless, if liquidated on those moves, you always have an option to get back in when the break failed.

The run higher did not go below the 100 hour MA until Friday - the day of the crash, when the price moved below and back above the line, and then plunged through.  The prior three days were also more consolidative in trading with a near double top (but note a failed new high on May 16) and lows centered around $7581.  

If you are trading an instrument that is as risky as bitcoin, those nuances should be a warning sign at the very least.  Traders needed to be scared a little of what might come next.

What now?

The tumble took the price down toward the 50% of the move up from the April 26th low (start of the run higher) THat level comes in at $6675. As mentioned the Coinbase low stalled at $6600.  That 50% area becomes a key support area now.

The move higher has so far stalled at the 50% of the tumble lower at $7494 (the high today has reached $7491).  

So the buyers and sellers are battling it out with dualing 50% retracements (one of the move higher, and one of the move lower) defining risk/bias on the topside and bottomside.  The 200 hour MA at $7414 is also in play (we currently trade just below that MA).  

Buyers/Longs will feel more comfortable with a move back above the 200 hour MA and 50% at $7494.  Getting above those levels will have the longs/buyers next eyeing the falling 100 hour MA at $7720. Get above that level and the full bullish euphoria is back in play. 

Sellers/shorts on the otherhand, may look to lean against the 50% area at $7494 and hope for a reversal back lower (toward the $6675 level again).  A break back below that level, should bring bitcoin even lower.

Now you may have a fundamental bullish (or bearish) story that makes you not care about the technical story.  The choice is yours.

However, do it at your own risk as the price action does give you an inkling of the market, event and liquidity risks, and can be used to ride the trends, but also protect those trend profits too.  

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Fri 17 May 2019 03:06:52 GMT

5

Bitcoin dropping away, back towards 7000USD

Down a few hundred dollars in past minutes  A heavy drop indeed. I can't keep up with the price in my typing!  Down nearly 1000 USD in past minutes now and under 7000 USD. 

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Bitcoin dropping away, back towards 7000USD


https://az705044.vo.msecnd.net/20190517/bitcon-drop-chart-17-may-2019.png Eamonn Sheridan
Fri 17 May 2019 03:06:52 GMT
Category: Cryptocurrency
5


Down a few hundred dollars in past minutes  A heavy drop indeed. I can't keep up with the price in my typing!  Down nearly 1000 USD in past minutes now and under 7000 USD. 

Asset 24 View More
AUD traders - Australian election decided, incumbent government wins
Asset 41
Thu 16 May 2019 02:57:43 GMT

1

CNBC: "Bitcoin is up 125% this year but could be due for a pullback, experts say"

A CNBC report with comments on a pullback due for BTC. Link here Price action today is not supportive of the view, its cracked a fresh recent high: ForexLive

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CNBC: "Bitcoin is up 125% this year but could be due for a pullback, experts say"


https://az705044.vo.msecnd.net/20190516/btcusd-chart-16-may-2019.png Eamonn Sheridan
Thu 16 May 2019 02:57:43 GMT
Category: Cryptocurrency
1
A CNBC report with comments on a pullback due for BTC. Link here Price action today is not supportive of the view, its cracked a fresh recent high: ForexLive

Asset 24 View More
Wed 15 May 2019 03:41:56 GMT

4

Calling all technical analysts - short term head and shoulders in bitcoin?

Check this out ladies and gentlemen of the TA world. Likely H&S after the run up for the crypto? Comments welcome!    ForexLive

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Calling all technical analysts - short term head and shoulders in bitcoin?


https://az705044.vo.msecnd.net/20190515/bitcoin-head-shoulders-chart.png Eamonn Sheridan
Wed 15 May 2019 03:41:56 GMT
Category: Cryptocurrency
4
Check this out ladies and gentlemen of the TA world. Likely H&S after the run up for the crypto? Comments welcome!    ForexLive

Asset 24 View More
Tue 14 May 2019 17:58:40 GMT

3

Bitcoin gives back some gains after running into resistance at July 2018 highs

Bitcoin pares gain to 1% Bitcoin gains have faded today after an incredible run that's seen the price nearly double since April 1. The high today was $8331 and that was a cue for some technical profit taking because it was near the July 2018 high of $8480. Since then, Bitcoin has given back nearly $400 of gains and is down to $7963.

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Bitcoin gives back some gains after running into resistance at July 2018 highs


//az705044.vo.msecnd.net/20190514/bitcoin-daily-chart.png Adam Button
Tue 14 May 2019 17:58:40 GMT
Author: Adam Button
Category: Cryptocurrency
3
Bitcoin pares gain to 1% Bitcoin gains have faded today after an incredible run that's seen the price nearly double since April 1. The high today was $8331 and that was a cue for some technical profit taking because it was near the July 2018 high of $8480. Since then, Bitcoin has given back nearly $400 of gains and is down to $7963.

Asset 24 View More
Mon 13 May 2019 22:12:14 GMT

1

CME Bitcoin futures reached an all-time record high of 33.7k contracts on May 13

Chicago Mercantile Exchange bitcoin contract  If you like the idea of trading bitcoin but are concerned over all the scams and thieving that happen from bitcoin 'exchanges' (these are websites folks, not regulated exchanges at all) then futures may be a viable option.

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CME Bitcoin futures reached an all-time record high of 33.7k contracts on May 13


https://az705044.vo.msecnd.net/20190513/cme-bitcoin-chart.png Eamonn Sheridan
Mon 13 May 2019 22:12:14 GMT
Category: Cryptocurrency
1
Chicago Mercantile Exchange bitcoin contract  If you like the idea of trading bitcoin but are concerned over all the scams and thieving that happen from bitcoin 'exchanges' (these are websites folks, not regulated exchanges at all) then futures may be a viable option.

Asset 24 View More
Mon 13 May 2019 14:06:56 GMT

12

Bitcoin had a great week last week. The run higher continues.

Double digit gains last week.   The price of bitcoin (from Monday to Friday) had a double digit gain last week (see post "").   Great week, in a week that saw stocks around the globe suffer. 

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Bitcoin had a great week last week. The run higher continues.


//az705044.vo.msecnd.net/20190513/2019-05-13_6-52-22.jpg Greg Michalowski
Mon 13 May 2019 14:06:56 GMT
Category: Cryptocurrency
12
Double digit gains last week.   The price of bitcoin (from Monday to Friday) had a double digit gain last week (see post "").   Great week, in a week that saw stocks around the globe suffer. 

Asset 24 View More
Fri 10 May 2019 15:50:27 GMT

Stocks may be down, but bitcoin is doing great this week

Up 12.7% from the Monday low As the US stocks suffer this week (Nasdaq is down -4.78% and S&P is down -3.89%), one thing that is not suffering is Bitcoin (using Coinbase).  It reached a low of $5565 on Monday  and is trading at $6266 area now, up $183 on the day.  For the week, that is a gain of about 12.7%.  Nice week for bitcoin investors.  

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Stocks may be down, but bitcoin is doing great this week


//az705044.vo.msecnd.net/20190510/2019-05-10_8-32-28.jpg Greg Michalowski
Fri 10 May 2019 15:50:27 GMT
Category: Cryptocurrency
0
Up 12.7% from the Monday low As the US stocks suffer this week (Nasdaq is down -4.78% and S&P is down -3.89%), one thing that is not suffering is Bitcoin (using Coinbase).  It reached a low of $5565 on Monday  and is trading at $6266 area now, up $183 on the day.  For the week, that is a gain of about 12.7%.  Nice week for bitcoin investors.  

Asset 24 View More
Wed 8 May 2019 02:21:45 GMT

5

Hackers steal $40.7 Million in Bitcoin from crypto exchange Binance

More than 7,000 bitcoin have been stolen from cryptocurrency exchange Binance Binance announced the loss:  a "large scale security breach" discovered May 7

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Hackers steal $40.7 Million in Bitcoin from crypto exchange Binance


Eamonn Sheridan
Wed 8 May 2019 02:21:45 GMT
Category: Cryptocurrency
5
More than 7,000 bitcoin have been stolen from cryptocurrency exchange Binance Binance announced the loss:  a "large scale security breach" discovered May 7

Asset 24 View More
Fri 3 May 2019 15:10:08 GMT

4

Bitcoin moves to highest level since November on Facebook news

Facebook building a cryptocurrency based payment system Bitcoin on Coinbase is trading up $351.93 at $5759. The high for the day reached $5796.93. That is the highest level since November 14th.  

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Bitcoin moves to highest level since November on Facebook news


//az705044.vo.msecnd.net/20190503/2019-05-03_7-34-13aa.jpg Greg Michalowski
Fri 3 May 2019 15:10:08 GMT
Category: Cryptocurrency
4
Facebook building a cryptocurrency based payment system Bitcoin on Coinbase is trading up $351.93 at $5759. The high for the day reached $5796.93. That is the highest level since November 14th.  

Asset 24 View More
Tue 30 Apr 2019 19:47:51 GMT

7

Everything about the moves today in crypto is curious but can be explained

There is no good news for tether The big revelation in the crypto market today is that Tether is only 74% backed. That's from Tether's general counsel Stuart Hoegner in an affidavit submitted today in its case against the New York Attorney General.

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Everything about the moves today in crypto is curious but can be explained


//az705044.vo.msecnd.net/20190430/bitfinex.png Adam Button
Tue 30 Apr 2019 19:47:51 GMT
Author: Adam Button
Category: Cryptocurrency
7
There is no good news for tether The big revelation in the crypto market today is that Tether is only 74% backed. That's from Tether's general counsel Stuart Hoegner in an affidavit submitted today in its case against the New York Attorney General.

Asset 24 View More
Thu 25 Apr 2019 22:21:50 GMT

4

Hope y'all got the heads up - Bitcoin, Tether prices hammered lower

The news hitting that has sent cryptocurrencies plummeting is here: In brief the allegations are that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) covered up missing funds, dating back to the middle of 2018. That the firm commingled client and corporate funds. The events had not been disclosed publicly.

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Hope y'all got the heads up - Bitcoin, Tether prices hammered lower


https://az705044.vo.msecnd.net/20190425/tether-chart-bitcoin-bitfinex.png Eamonn Sheridan
Thu 25 Apr 2019 22:21:50 GMT
Category: Cryptocurrency
4
The news hitting that has sent cryptocurrencies plummeting is here: In brief the allegations are that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) covered up missing funds, dating back to the middle of 2018. That the firm commingled client and corporate funds. The events had not been disclosed publicly.

Asset 24 View More
Thu 25 Apr 2019 22:01:38 GMT

2

Another cryptocurrency bad news story … taking a toll on a hapless bitcoin

News of a cover up and missing funds at a crypto exchange:  The Wall Street Journal reports that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) has been accused of covering up

View More

Another cryptocurrency bad news story … taking a toll on a hapless bitcoin


https://az705044.vo.msecnd.net/20190425/bitcoin-bitfinex-tether.png Eamonn Sheridan
Thu 25 Apr 2019 22:01:38 GMT
Category: Cryptocurrency
2
News of a cover up and missing funds at a crypto exchange:  The Wall Street Journal reports that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) has been accused of covering up

Asset 24 View More
Thu 25 Apr 2019 21:53:36 GMT

NY AG alleges cryptocurrency exchange operator concealed missing funds

The Wall Street Journal reports that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) has been accused of covering up missing funds. - By commingling client and corporate funds  Here is the for more (may be gated)

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NY AG alleges cryptocurrency exchange operator concealed missing funds


https://az705044.vo.msecnd.net/20180128/tether.png Eamonn Sheridan
Thu 25 Apr 2019 21:53:36 GMT
Category: Cryptocurrency
0
The Wall Street Journal reports that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) has been accused of covering up missing funds. - By commingling client and corporate funds  Here is the for more (may be gated)

Asset 24 View More
Thu 25 Apr 2019 02:58:30 GMT

7

McAfee vows to unmask crypto’s Satoshi Nakamoto, then backs off

Yesterday I posted on this:  McAfee has backed off now. he says he knows the identity but won't be saying when he'll reveal it.  LOL. Sure, dude, whatevs. 

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McAfee vows to unmask crypto’s Satoshi Nakamoto, then backs off


https://az705044.vo.msecnd.net/20190425/the-ring.png Eamonn Sheridan
Thu 25 Apr 2019 02:58:30 GMT
Category: Cryptocurrency
7
Yesterday I posted on this:  McAfee has backed off now. he says he knows the identity but won't be saying when he'll reveal it.  LOL. Sure, dude, whatevs. 

Asset 24 View More
Wed 24 Apr 2019 18:02:26 GMT

1

Bitcoin toys with the 100 hour MA on Coinbase. A move below is needed by sellers

Held on the test earlier today The price of bitcoin toyed with the 100 hour MA after falling earlier in the trading day. That MA stalled the fall, the price corrected marginally higher,  and has dipped back lower toward the same MA (blue line now at $5394.68.  A move below would next target a trend line at $5362 and the 200 hour MA at $5317.94 (and rising).  

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Bitcoin toys with the 100 hour MA on Coinbase. A move below is needed by sellers


//az705044.vo.msecnd.net/20190424/2019-04-24_10-55-04.jpg Greg Michalowski
Wed 24 Apr 2019 18:02:26 GMT
Category: Cryptocurrency
1
Held on the test earlier today The price of bitcoin toyed with the 100 hour MA after falling earlier in the trading day. That MA stalled the fall, the price corrected marginally higher,  and has dipped back lower toward the same MA (blue line now at $5394.68.  A move below would next target a trend line at $5362 and the 200 hour MA at $5317.94 (and rising).  

Asset 24 View More
Tue 23 Apr 2019 23:36:38 GMT

10

Bitcoin creator Satoshi Nakamoto identity to be revealed within the next week

John McAfee is founder of the McAfee anti virus software and group. He says he has found out the real identity of Bitcoin creator Satoshi Nakamoto. And will reveal it within the coming days. Says Nakamoto is a man living in the U.S.

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Bitcoin creator Satoshi Nakamoto identity to be revealed within the next week


https://az705044.vo.msecnd.net/20190423/btc-usd.png Eamonn Sheridan
Tue 23 Apr 2019 23:36:38 GMT
Category: Cryptocurrency
10
John McAfee is founder of the McAfee anti virus software and group. He says he has found out the real identity of Bitcoin creator Satoshi Nakamoto. And will reveal it within the coming days. Says Nakamoto is a man living in the U.S.

Asset 24 View More
Tue 23 Apr 2019 13:28:51 GMT

4

One of the world's greatest investors lost $130 million on Bitcoin

Even the best get burned The billionaire founder of SoftBank lost $130 million of his own money by buying Bitcoin near the peak and later selling it, according to a Dow Jones .

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One of the world's greatest investors lost $130 million on Bitcoin


//az705044.vo.msecnd.net/20190423/masayoshi-son.png Adam Button
Tue 23 Apr 2019 13:28:51 GMT
Author: Adam Button
Category: Cryptocurrency
4
Even the best get burned The billionaire founder of SoftBank lost $130 million of his own money by buying Bitcoin near the peak and later selling it, according to a Dow Jones .

Asset 24 View More
Mon 22 Apr 2019 17:34:52 GMT

Bitcoin keeps the bulls more in control

A run to the highs today ran into sellers though The price of Bitcoin on Coinbase is trading up about $81 at $5318. Although higher, the pair did run up to $5407 and backed off about $100. 

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Bitcoin keeps the bulls more in control


//az705044.vo.msecnd.net/20190422/2019-04-22_10-34-58.jpg Greg Michalowski
Mon 22 Apr 2019 17:34:52 GMT
Category: Cryptocurrency
0
A run to the highs today ran into sellers though The price of Bitcoin on Coinbase is trading up about $81 at $5318. Although higher, the pair did run up to $5407 and backed off about $100. 

Asset 24 View More
Mon 15 Apr 2019 16:06:18 GMT

Bitcoin moves back above 100 hour MA. Tilts the bias more to the upside.

Buyers making a play. The price of bitcoin on Coinbase has moved higher in trading today. The price is up about $66 to $5157.55. In the process, the price moved above the 100 hour MA (blue line in the chart below) at $5083.11. The 200 hour MA has seen the price action (green line), move above and below the MA line.   

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Bitcoin moves back above 100 hour MA. Tilts the bias more to the upside.


//az705044.vo.msecnd.net/20190415/2019-04-15_8-53-35aaa.jpg Greg Michalowski
Mon 15 Apr 2019 16:06:18 GMT
Category: Cryptocurrency
0
Buyers making a play. The price of bitcoin on Coinbase has moved higher in trading today. The price is up about $66 to $5157.55. In the process, the price moved above the 100 hour MA (blue line in the chart below) at $5083.11. The 200 hour MA has seen the price action (green line), move above and below the MA line.   

Asset 24 View More
Tue 9 Apr 2019 05:19:18 GMT

6

China looks into eliminating Bitcoin mining

China's state planner decides to add cryptocurrency mining to list of activities that should be phased out But before any decision is made on this, the NRDC will be seeking public opinions on the matter and the public has until 7 May to comment on the draft.

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China looks into eliminating Bitcoin mining


//az705044.vo.msecnd.net/20190409/china-bitcoin.png Justin Low
Tue 9 Apr 2019 05:19:18 GMT
Author: Justin Low
Category: Cryptocurrency
6
China's state planner decides to add cryptocurrency mining to list of activities that should be phased out But before any decision is made on this, the NRDC will be seeking public opinions on the matter and the public has until 7 May to comment on the draft.

Asset 24 View More
Mon 8 Apr 2019 19:28:50 GMT

Bitcoin trades to a new year high but backs off. What would hurt the bullish bias?

Takes out last week's high at $5345, but high can only reach $5352 Bitcoin on Coinbase is up about $70 at $5216.  The high for the day reached $5352.50. That was high enough to take out the high from last week (and the year) at $5345.  The failure to run higher, has led to a rotation lower, but the digital currency remains up on the day.

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Bitcoin trades to a new year high but backs off. What would hurt the bullish bias?


//az705044.vo.msecnd.net/20190408/2019-04-08_12-18-29.jpg Greg Michalowski
Mon 8 Apr 2019 19:28:50 GMT
Category: Cryptocurrency
0
Takes out last week's high at $5345, but high can only reach $5352 Bitcoin on Coinbase is up about $70 at $5216.  The high for the day reached $5352.50. That was high enough to take out the high from last week (and the year) at $5345.  The failure to run higher, has led to a rotation lower, but the digital currency remains up on the day.

Asset 24 View More
Tue 2 Apr 2019 18:38:11 GMT

2

Bitcoin holds most of the gains from the surge higher

Coinbase price moves above the 200 day MA The price of bitcoin surged higher in trading today. The low today was at $4127.20. The high extended to $5121. This is on the Coinbase exchange. 

View More

Bitcoin holds most of the gains from the surge higher


//az705044.vo.msecnd.net/20190402/2019-04-02_11-21-08.jpg Greg Michalowski
Tue 2 Apr 2019 18:38:11 GMT
Category: Cryptocurrency
2
Coinbase price moves above the 200 day MA The price of bitcoin surged higher in trading today. The low today was at $4127.20. The high extended to $5121. This is on the Coinbase exchange. 

Asset 24 View More
Tue 2 Apr 2019 04:53:49 GMT

4

Bitcoin spikes by more than 10% to over four-month highs

Price breaks out of its narrow range since December ForexLive I'm trying to look for reasons for the move higher here but I'm really not seeing any (the usual 'pump and dump' move perhaps?). Price now cracks above the $4,600 level as I'm typing this.

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Bitcoin spikes by more than 10% to over four-month highs


//az705044.vo.msecnd.net/20190402/4-2-2019-1-02-26-pm.png Justin Low
Tue 2 Apr 2019 04:53:49 GMT
Author: Justin Low
Category: Cryptocurrency
4
Price breaks out of its narrow range since December ForexLive I'm trying to look for reasons for the move higher here but I'm really not seeing any (the usual 'pump and dump' move perhaps?). Price now cracks above the $4,600 level as I'm typing this.

Asset 24 View More
Mon 1 Apr 2019 15:22:35 GMT

1

Bitcoin bounces off the 100 hour MA/trend line support

Is it a high for the year? The price of bitcoin is higher on the day and according to Bloomberg, reaching a high for the year.  The problem is Bloomberg uses the weekday trading data.  Coinbase, a leader in digital currency, has the highs for the year on Feb 23 and 24. Those highs came on a weekend.  

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Bitcoin bounces off the 100 hour MA/trend line support


//az705044.vo.msecnd.net/20190401/2019-04-01_8-11-00aaa.jpg Greg Michalowski
Mon 1 Apr 2019 15:22:35 GMT
Category: Cryptocurrency
1
Is it a high for the year? The price of bitcoin is higher on the day and according to Bloomberg, reaching a high for the year.  The problem is Bloomberg uses the weekday trading data.  Coinbase, a leader in digital currency, has the highs for the year on Feb 23 and 24. Those highs came on a weekend.  

Asset 24 View More

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