Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
Rosenstein and Mueller: the Regime Change Tag-Team - 25th May 17
Stock Market Top - Are We There Yet? - 25th May 17
Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey - 25th May 17
USD/CAD Continues Decline - 25th May 17
Bitcoin Price Goes Loco! Surges through $2,500 Despite Unclear Fork Issues - 25th May 17
The US-Saudi Arms Deal - Sordid Saudi Signals - 25th May 17
The No.1 Commodity Play In The World Today - 24th May 17
Marks and Spencer Profits Collapse, Latest Retailer Hit by Brexit Inflation Tsunami 2017 - 24th May 17
Why Online Trading Platforms Are Useful for Everyone - 24th May 17
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17
US Dollar Cycle : Deep Dive - 21st May 17
Bitcoin Breaks the $2,000 Mark as Cryptocurrencies Continue to Explode Higher - 21st May 17
Stocks, Commodities and Gold Multi-Market Status - 21st May 17
Stock Market Day Trading Strategies and Brief 20th May 2017 - 21st May 17
DOW Needs to Rally Big or Correction is Next - 20th May 17
EURUSD reaches DO or DIE moment! - 20th May 17
How to Get FREE Walkers Crisps Multi-packs! £5 to £28k Pay Packet Promo - 20th May 17
UK BrExit General Election 2017 - Will Opinion Pollsters Finally Get it Right? - 19th May 17
Gold Mining Junior Stocks GDXJ 2017 Fundamentals - 19th May 17
If China Can Fund Infrastructure With Its Own Credit, So Can We - 19th May 17
Evidence That Stocks are More Overvalued than Ever - 19th May 17
Obamacare May Become Zombiecare In 2018 - 19th May 17
The End of Reflation? Implications for Gold - 19th May 17
Gold and Silver Trading Alert: New Important Technical Development - 19th May 17
Subversion And Constructive Synthesis Of Capitalism And Socialism - 18th May 17
Silver: Train Leaving Station Soon! - 18th May 17
Credit and Volatility Signal That Financial Conditions Are Very Overheated - 18th May 17
Another Stock Market "Minsky Moment" or Will the Markets Calm Down? - 18th May 17
WannaCry Ransomware Virus Is a Globalist False Flag Attack On Bitcoin - 18th May 17
Euro, Stocks, Gold Momentum Extremes All Round! - 18th May 17
US Stock Market Slumps on Establishment / CIA Trump Impeachment Coup Plan - 18th May 17
Tory Landslide, Labour Bloodbath - Will Opinion Pollsters Finally Get a UK Election Right? - 17th May 17
The stock market sectors which are breaking out in 2017 - 17th May 17
A ‘Must-See’ Chart for Gold and Silver Aficionados  - 17th May 17
Will the SPX Stock Market Final Surge Fail to Appear? - 16th May 17
Claim your FREE copy of Jim Rickards’ explosive book - 16th May 17
GOP Establishment Elite Plots Trump Removal - 16th May 17
Walkers Crisps Pay Packet Cheats, Shoplifters and Staff Conning Customers - 16th May 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

Bitcoin Important Price Action to Be Seen

Currencies / Bitcoin Mar 07, 2017 - 04:44 PM GMT

By: Mike_McAra

Currencies

In short: no speculative positions.

Bitcoin is making its way into mainstream press. In an article on the CNBC website, we read:

Digital currency advocates had plenty to crow about last week when bitcoin's price overtook gold.

The event signaled a potentially important moment point for bitcoin, which is generally seen as asset that stores wealth. Bitcoin has gained more than 60 percent in price since mid-January.



Now comes a chance for bitcoin to take another step toward legitimacy.

At some point this week, the Securities and Exchange Commission is likely to rule on a request from Tyler and Cameron Winklevoss — the twin brothers who battled Mark Zuckerberg in court shortly after he founded Facebook — to bring a bitcoin exchange-trade fund to market. If the ETF is approved, it will give investors another vehicle to capitalize on the bitcoin craze without having to go to the exchanges where the currency is traded.

While a bitcoin ETF would be huge for the currency, market experts remain skeptical that it will happen.

It is not at all clear that the ETF is the actual reason for the recent Bitcoin rally. It might be the case but it is not a done deal. The more important part here might be that CNBC included Bitcoin in its Coming up this week piece. The general idea here is that Bitcoin coverage might be peaking which would also suggest that the top is near.

Another side of the story is that, if the reason behind the rally is the ETF, we might have quite an important week on our hands. It seems that the market is inclined to believe that the Bitcoin ETF will be approved and hence the move up. At the same time, a report from Needham & Company, an investment bank and asset management firm, puts the odds of the ETF being approved at 25%. If the ETF doesn’t receive approval, we might see a quite significant sell-off. It might also be the case that a lot of the potential upside is already in the price. The balance of odds suggests that we might see if not a move down in the next week, then at least a lot of volatility.

For now, let’s focus on the charts.

Bitcoin moved to an all-time high once again, coming very close to $1,300. In our recent comments, we wrote:

We saw a move above $1,200 but Bitcoin came back below this level almost immediately. On the one hand, Bitcoin is still above the 2013 top which makes the situation more bullish. At the same time, we are already after a very significant move up and the last two days have been a move up on very weak volume so far (...). This is a bearish indication.

The situation remains pretty much the same. We are at an all-time high, however, the recent price action might make Bitcoin look overextended at present and this suggests that at least a short-term correction might be in the cards.

Bitcoin went up but the move was not convincing in terms of volume. The situation is still very similar to what we saw previously. Bitcoin is above recent resistance level, however, the rally already seems stretched and we might be in for a serious correction.

On the long-term BTC-e chart, we see the recent move above $1,200. In our previous alert, we wrote:

Add the move up on average volume and the fact that Bitcoin is getting mentioned by Reuters, and it seems that we might be in for at least a temporary move down. At the same time, we see Bitcoin above the 2013 top a move that seems to be confirmed. This means that Bitcoin might still shoot up before changing tack. This is by no means certain. At present, we would prefer to see some indications of a move to the downside before opening any hypothetical positions.

Right now, we’re seeing yet another move up and it might be the case that this is the possible move up before a more significant correction. We have not yet seen an indication that a move down has started and it would take such an indication for us to consider hypothetical short positions. This is not the case just now. We are of the view that we might be close to a very significant top but we might still see a move up before a corrective move down. The upcoming ETF decision might serve as an important trigger in the next couple of days.

Summing up, in our opinion not having speculative positions might be favorable at the moment.

Trading position (short-term, our opinion): no positions.

Regards,

Mike McAra

Bitcoin Trading Strategist
Bitcoin Trading Alerts at SunshineProfits.com

Disclaimer

All essays, research and information found above represent analyses and opinions of Mike McAra and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mike McAra and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. McAra is not a Registered Securities Advisor. By reading Mike McAra’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Mike McAra, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Mike McAra Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife