Bitcoin $BTCUSD rallied sharply during the 1/2/2018 US session, from around 13.5K to about 15.2K before stalling.
- The rally broke above a falling resistance.
- This is a bullish sign that goes against my bearish assessment for BTCUSD last week.
- Still, note that price is being tested by the 200- and 100-period simple moving averages in the 4H chart.
- If price holds above 14K, maybe it will indeed push towards the 16.5 support/resistance pivot.
- Next, there are 2 events that would convince me a bull run towards 20K is coming.
- 1) If price pushes above 16.5K.
- 2) If price starts to anchor (find support) at 15K.
- Most financial media today attributed the rise in BTC price to the revelation that Peter Thiel has been a big investor in bitcoin.
- Now, if this is the first time a big name was thrown behind Bitcoin, I would believe it. But I think the rally is simply a result of timing - the market waking up after the holidays.
- Let's see if this initial excitement carries momentum.
- We will see in the price action this week.