Bitcoin has been surprisingly quiet around the highs at 8000.
There is no real selling. Any Goldmans whales selling from
8000 have been overpowered but the buying surge out of China hasn't materialised as yet. Instead Bitcoin is moving
sideways, every sale being quickly accumulated but lacking enough buying power to push higher in the near term.
It can carry on moving sideways for a while yet, trying to build a new base at 8000.
Although disappointing so far, Bitcoin is beginning to behave like a regular stock now. The Noah Cross quote from
Chinatown springs to mind: " 'Course I'm respectable. I'm old. Politicians, ugly buildings and whores all get respectable - if
they last long enough." Maybe we can add Bitcoin to that list soon, too. Bitcoin respectable? It's certainly beginning to act
that way. So it's quiet, verging on respectable, moving sideways in a holding pattern as every sale is quickly absorbed.
Those big bear attacks from 8000 have failed. They've realised they can't fight this thing, not at 8000 anyway. It should
continue to grind higher again to 8087 and then move sideways to try to build a base at 8000...it needs to turn this
level from near term resistance into support over the coming hours because if it can't find the power to do this it will drift
away to 7900 and look for support here and down to 7855.
There's more support building just below here, at 7798 (minor) and then major support at 7717-7700 freezer lid
levels. Whilst above here Bitcoin belongs to the bulls. But it needs to clamber above 8000 and hold to avoid drifting
sideways from here for a while longer. Day traders can use the the little dynamic supporting this move as an exit for
longs but it's tricky with such wide spreads - (wouldn't it be good if Goldmans actually did start a Bitcoin desk, forcing
others to join too, bringing competition to spreads and driving down margins and making day-trading so much easier ?
Any comments?) - if it loses the dynamic it will fall back to 7900 but the spread makes it untradeable.
So, Bitcoin is positive above 8000 and neutral whilst under this level, the likely of the day, and whilst unable
to regain that level and hold up there it's likely to trade sideways/down using 7900 down to 7855 as support before
grinding higher once more. Stay long, stay patient.
A break and hold above 8000 is the price action bulls need now. Now that would be respectable.