100 day MA just ahead
This week, the price of bitcoin on the Coinbase exchange, broke above the 200 hour MA (green line in the chart below). That ignited a bullish run higher (see post: "Trading education: Who cares if Blackrock likes bitcoin or blockchain?"). Bulls in charge.
Yesterday, the price run continued and when the price moved above a ceiling area on the same hourly chart below, the price ran higher. Bulls in charge. (see post: "Bitcoin spikes higher. Trades above $7000 for the first time since June 10")
Today, the pair is up about $130 on the day after reaching a high of $7545.00. The run higher is approaching another key technical level at the 100 day MA (see blue line in the chart below). The price has not traded above the 100 day MA since early May. That level comes in at $7608.82.
Traders who feel the price surge is likely to run out of steam, can sell against the level with a stop above (or just take profit if long).
Those who seen open road ahead and another break and run higher want to see a move back above the 100 day MA. That would be another step in the bullish direction for the digital currency.
PS Fed Chair Powell poured some cold water on Bitcoin today when he said that crypto currencies are not real currencies because they have no intrinsic value.
He also said:
- There are investor and consumer protection issues
- Cryptocurrencies are great if you are trying to hide money
- "Relatively unsophisticated investors see the asset go up in price, and they think: 'This is great; I'll by this'. In fact there is no promise of that."
Those are not bullish comments, but the price action has not been phased bearishly for now.
