BTC’s recent head & shoulders could move the price higher

Bitcoin seems to have put in a decent floor at around $12,500 over the last month.

The cryptocurrency has bounced significantly off that mark three times, while moving higher recently after the holidays.

Perhaps there were family conversations — like the many I had — over Christmas cookies and cakes that prodded some to dip a toe in?

While there is little technical analysis reported in the public on bitcoin since there is a belief that rational charting is of little value because of the huge price volatility.

The fact that there is a recent head & shoulders in the chart suggests in other securities could suggest a reversal of the recent bearish sentiment, which has seen bitcoin come off its run toward $20K.

In speaking with futures pros, I am at a loss to say how the CBOT and CME along with other security exchanges that offer bitcoin futures contracts as being the impetus for lower pricing.

All these future contracts settle in cash, not bitcoin, so the influence of shorting bitcoin really doesn’t have a similar price effect since no digital currency is bought or sold to execute the futures contract.

As the crypto moves toward $14.8K on Wednesday morning in the US, there appears to be a solid bottom building, so let’s see if some government comes out with a negative pronouncement to upend that foundation.

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