Bitcoin Price: Emergent Bears

After the relatively weak prices this weekend it is good to see some moderate strength with a localized high of $250. That said, the push did not last for long and the strength ebbed away and has since faded unfortunately. Today’s price is about the same as it Friday’s $245, indeed all of the technicals have stayed relatively the same and have held around the moving average at the 50 day mark. Let’s take a look at the 30 minute mark:

The bearish trading this weekend had multiple times where panicked trades could have pulled down support levels past the 50% Fibonacci retracement point at $238 but the positive support level could not be broken. Since price could not fall into the negative support range it would appear that there is an institutional level movement or whale-level investors that have held current prices with several strong bullish indicators on several technical levels. It is difficult to say whether this is long term activity or another market pump for more short term action and implicit benefit of traders at that level. That said, I think it is more of the former and that the double bottom “W” shape is great for a bullish trend in the near term.

I could go through several levels of technicals with everyone but they all show a fairly overbought market over the past few days and there honestly is not much to look at. Anything that might resemble price breakdown is difficult and muddled at best in the technicals; though there was a limited breakdown at the $238.50 low prior to the local high of $250. Before I make any solid trade recommendations I would want to see some final market order consolidation around $240 to $242 or something within this range before any consideration of uptrend trading.

I will close with a quote from /r/BitcoinMarkets and the daily discussion of how Nasdaq is going to test blockchain technology and how it will be tested and possibly implemented for the traditional trading of stocks:

“Nasdaq OMX Group Inc. is testing a new use of the technology that underpins the digital currency bitcoin, in a bid to transform the trading of shares in private companies. The experiment joins a slew of financial-industry forays into bitcoin-related technology. If the effort is deemed successful, Nasdaq wants to use so-called blockchain technology in its stock market, one of the world’s largest, and potentially shake up systems that have facilitated the trading of financial assets for decades.”

Furthermore, Nasdaq chief executive Robert Greifeld said that “Utilizing the blockchain is a natural digital evolution for managing physical securities” and that the most basic technology behind the bitcoin protocol could “benefit not only our clients, but the broader global capital markets.” Well done everyone, this kind of adoption is exactly what the community needs.

Today’s word is an important one for retirement, I give you fixed income:

“A type of investing or budgeting style for which real return rates or periodic income is received at regular intervals at reasonably predictable levels. Fixed-income budgeters and investors are often one and the same – typically retired individuals who rely on their investments to provide a regular, stable income stream. This demographic tends to invest heavily in fixed-income investments because of the reliable returns they offer.”

Fixed income is something that everyone will have to face sooner or later and investments are a key tool in this financial approach and philosophy. I mentioned the Nasdaq adoption and fixed income together because adoption and philosophy can be carefully applied no matter what stage in life you are: we should all be in this for the long haul in order to reap the benefits of what has been sown. Happy trading!