Be aware...
Most already know that bitcoin not only cracked $10,000 but also $11,000 yesterday. The price reached a peak of $11,434, and then fell to the 200 bar MA on the 5 minute chart (green line in the chart below), rallied higher, but turned around and fell to a low of $9,019. That's a 21% fall from the high. Of course last Friday the price closed on that day around $8,245. So there is no tears (except for those that bought above $11,000).
Anyway, the drop was sharp but the snap back correction was also quite steep. That move took the price back up to test the trailing 100 bar MA at $10,415. The high reached $10,390 which is close enough in the world of bitcoin, to be considered a good test of the MA level.
What now? The price trades at $9,932 as I type (it does not stay still). The 100 bar MA is above at $10,313 area now (and moving lower). Stay below that MA and you have to be careful longs. If it goes above, longs are ok.
In this speculative digital currency, you have to be careful. Last week we traded as low at $7800. The week before, the price traded down to $5605, That's not long ago. So be aware of the risks.
As an aside, there is an article on Bloomberg titled "Coinbase Loses Bid to Block IRS Probe of Bitcoin Gains" If there are bitcoin millionaires being made out there, you can bet there the IRS will be asking questions. They are going to Coinbase for information on some of the players. Only 800 to 900 taxpayers have reported their profits to the IRS. There's gotta be more out there.
Maybe some of the millionaires will have to sell to pay the short term capital gain liability. Damn IRS....
Here is the link: CLICK HERE.
