Bitcoin is bouncing off of $12,000 for the past day.
As I wrote Thursday, A hedge fund technician looking at the recent pricing chart suggested that $12K would be a new ceiling in the short term.As price appreciates due to hedge funds and other Wall Street money managers begin buying again tepidly to dollar-cost average their December purchases, while other late comers are selling for a loss at the $12,000 level.
The selling should abate later Friday as the shake out ends and the $12,000 breakout will hold and build strong support there, according to a fund technical analyst I spoke with Friday morning.
While this analysis is based on mathematics including statistics and calculus, it does not take into account the emotional basis of bitcoin. So there may be fits and starts to this analysis, but for that last month or so it has found the price trend.
The outlier to this price analysis is the effect of possible US government shut down news.
