Bitcoin makes a break for it
Bitcoin is up 21% today, or $6880 to $39,394 in its best day in months.
Looking at the chart, it's one of those ones where you kick yourself for missing the forest for the trees.
Everyone has been laser-focused on the big breakdown from $59,500 to $29,000 and the lack of any real bounce from there. That left a negative longer-term look on the chart.
However, when the 'risk off' rout hit last week, bitcoin managed to hold the June low. That certainly caught my eye as a surprise. I noted that and emphasized that everyone was bearish because of the chart.
The next clue was the bullish outside day last Wednesday as sentiment improved. Now there was a key level that held and a technical signal. Add in all the jawboning from Elon Musk and the Amazon news today and it's been a race higher.
What next? The coast certainly isn't clear for the bulls because the $42,000 level is the major barrier as it represents the late-May and June highs. If that gives way, look for another bounce like we're seeing today.