On waking up this morning, I did something that had never be done before – look at my phone! I don’t think it is a good habit and I put this down to a one off. So, what was I checking? Bitcoin price of course! Seeing the price at $9738 (Bitfinex prices) made me immediately think of the next breakthrough price - $10,000. Just a few hours before writing this piece, the price of Bitcoin had gone over the $9900 mark. $10,000 does look inevitable but we must bear in mind that there could be a potential problem.
Parabolic moves by any asset sometimes bring about a major move in the price. In this case, the fear of missing out (FOMO). We are bound to see many more people come into the market precisely due to FOMO. This can only lead to a higher Bitcoin price. For those who use moving averages in their strategies will know that parabolic price moves tend to test the 100-day moving average before bouncing off. The same goes for the 100-day exponential moving average if that is what you use. We must also bear in mind that testing 100-day moving averages does not mean the price won’t fall through. It has in the past and will in the future. I conclude by asking how high you think the price will go before a major retracement? I have my answer but then again, your guess is as good as mine.
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