Bitcoin finds a buyer(s). Cracks $8000 for a moment. What next?

Bitcoin finds a buyer(s). Cracks $8000 for a moment. What next?

Up about $800 on the day

The price of bitcoin has been treading water in narrow trading ranges over the last few days (
see post from yesterday).  As mentioned in the post yesteeday “At some point the non-trend should trend.”  Well it trended.  

Some of the chatter has centered on the idea that US investors have been forced to sell to pay taxes on their gains from 2017.  The IRS has made it known that they were looking for declaration of earnings from gains on taxes for 2017. The final day for paying taxes is Monday, April 16th this year.  

Technically, the price moved above the 100 and 200 hour MAs and a topside trend line (see chart above).  The price also cracked above the the $7200 area that was a ceiling on two runs higher over the last 13 or so days of trading. 

The high extended to $8050. That took the price above the 

  • 38.2% at $7490, 
  • the high from April 3rd at $7520. 
  • the 50%  at $7812. 

However, the price has moved back below the 50% (trades at $7716).  That is still up $826 on the day (PS the low was down at $6767 on Coinbase).

The price cracked above key technical levels and ran.  I don’t know how much traded on the way up (liquidity conditions can be quite low), or how much was traded nearer the highs vs the break area.  

Traders from a technical perspective will be looking at the $7490 to $7520 now for support.  If the buyers missed the run, that would be a logical area for the buyers to stick a toe in the water.  A move back below that level does not ruin the bullish run, but it could force a retest of the $7200 level below.  

Right now, the bullish train has left the station.  

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