Rises by 9%...Why not?
Square, the company run by Jack Dorsey (who also runs Twitter), said that they were "testing" an App that would let customers buy and sell bitcoin. That news was worth a near 9% runup in the crytocurrency to a high of $7263 before consolidation between that level and $7100 set in during the NY session.
Looking at the hourly chart above, the price bull flagged in trading yesterday. Today, that flag was broken on the topside. The price moved above the 100 hour MA (blue line), stalled at the 200 hour MA (green line), before breaking above that level on its way to the highs. The 200 hour MA at $6970.96 is now close risk for the longs.
Last week,and into trading this week, the digital currency fell nearly 30% from the peak. A lot of that has been recovered and the price is back above the technical levels cited and the $7000 level.
PS Squares shares advanced 5% at the opening on the news but has backed off and trades up $1 or 2.52% at $40.74.
As always, Bitcoin is a risky instrument. The technicals tend to show trading bias and allow traders to define and limit risk. The reaction to the the bull flag, the breading of the 100 and 200 hour MAs are examples on how traders (out there in digital currency trading land) are using the technical tools to define and limit risk.
