Bitcoin trades to a new all time high ahead of Coinbase IPO
Bitcoin also trades well technically
Bitcoin is currently up over $3400 or +5.87% and traded to a new all time high price of $63769. That high surpassed the March 13 high price at $61,781. Traders will now be eyeing that level as support going forward.
The move higher today also moved above the more recent highs from April 10 and April 12 at near $61222. There were 2 tests of that area before breaking higher today and running.
Traders are giving the IPO tomorrow of Coinbase as the reason for the frothy market of late. There is chatter that the IPO would be worth 100B which is crazy but who knows. Although the earnings calendar gets started tomorrow with JPMorgan and Citigroup reporting, the story will be the Coinbase IPO.
Although the price action has seen the price of Bitcoin move from $50411 from April 7th to $63769 today, the $13358 gain or 26.5% gain from low to high, has done a good job of stepping higher technically.
The first trend move higher, peeked at $60103, and then retraced around 50% to $55443 (50% was at $55257). The next trend move higher took the price to a high of $61222 before again retracing around 50% ($58332). The pair also tested the 200 hour MA just below that level. Buyers leaned against both levels and pushed the price higher and to new all time high today.
If this is a high, and the pattern continues, the 50% of the last move higher comes in at $61036. That would be just below the double top near $61122 level increasing that levels importance going forward. As long as the price can stay above that area on any correction, the buyers remain in full control. Of course, this may not be the high today. The buyers are still in control.
In reality, the Coinbase IPO should not necessarily be a barometer for Bitcoin. Coinbase is a broker that facilitates trade for the buyers and sellers in Bitcoin. Nevertheless, if the price is going higher because of the IPO (and there is at least some correlation given a frothy market leads to more business), the price can go lower (or higher) after the IPO.
The good news is the technicals are defining the risk for the digital currency. Right now, the bias inflection point would be near $61000. Stay above is more bullish. Move below and we could see more corrective price action in the price of Bitcoin. Anything less, and the sellers are not really winning.