Bitcoin’s $10K bounce will tell analysts plenty

As bitcoin falls under the $10,000 level, the price support seems to have weakened.

According to the Coindesk charting, the cryptocurrency bounced more than $130 off the $9980 low Tuesday morning in NYC. You could see Twitter lighting up with tweets like: BTC < $10K.

It’s the FUD (fear, uncertainty and doubt) many speak about by those who lack understanding or believe they get it but don’t believe it.

Getting back to price support. In speaking with the hedge fund analysts and two fund managers dabbling in BTC, they want to see the digital currency fall below the psychological barrier of $10K and see how it responds.

“Is there support at $10K,” is how one fund guy put it. “And if there is what is the strength of that support?”

In the 45 minutes after BTC broke the $10K line, the bounce has been impressive. More than $350 snap back to $10,356. Not that it’s a recommendation for a strong buy signal, but it does show resiliency, especially with Asia in the dark.

As another money guy emailed: “Normally you would want to see where the security closed after breaching a milestone, Can’t do that with BTC, however.”

So let’s see if it is just a case of lower highs and lower lows, or if it’s a true bounce for the near term to higher highs.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.