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.
Technically, looking at the hourly chart above, the price dipped below the 100 hour MA on the Monday lows and again on a flush out low on Wednesday (no closes below the 100 hour MA - blue line - on Wednesday). So for most of the week, the price has been above that barometer.
IN the move up today, the price moved above a trend line. The underside of the trend line comes in at $6126 currently (and going higher). That is a risk level for the digital currency buyers (but only the minimum). Getting back below the rising 100 hour MA would be another target that would be needed to be broken to turn the bias more in favor of the sellers.
What about the upside? Is there some resistance that might stall the rise (profit taking or sellers)?
Looking at the daily chart below, the $6372 level is a topside trend line (see red numbered circles). The high price today reached $6337.01. If traders are looking to take profit, that might be level to lean. Of course, if that line is broken, the bulls remain firmly in control, and the 50% of the move down from the May 2018 high would be the next target at $6538 (was also near November 2018 highs).
Stocks are having one of the worst weeks in a while, but for bitcoiners, its been a great week.