Technical Analysis: The Next Stop for Bitcoin

It’s hard to argue the Bitcoin has become one of the most volatile – but rewarding currencies of the last year.  Up nearly 180% in a year, there are no clear signs the rally could stall.

Instead, should momentum continue, the crypto-currency could hit $1,216 before long.

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In fact, after breaking above $1,108.80 highs set in 2015, there’s no telling how high it could run.  As we noted on December 29, 2016:

It’s one of the best-performing assets of 2016.  Since the start of the year, Bitcoin is up nearly 90%, having just recently hit a two-year high of $918.95.  Near-term projections put the currency in range of $1,000 to $1,200.  New Year 2017 projections put it as high as $1,216, as demand explodes for alternative investments.

Barring any unexpected surprises or failure at prior resistance points, there’s good probability for us to see $1,000 in the not too distant future. There also doesn’t seem to be much resistance especially after President-Elect Donald Trump appointed pro-Bitcoin Mick Mulvaney to the head of the Office of Management and Budget.  It’s a move that could very well signal a more favorable stance on the digital currency moving forward.

After a brief pullback, the rally to $1,216 continued, as hoped. 

In fact, it’s now testing a high of $1,180 and shows no real signs of slowing.  Part of the reason for that is growing excitement that U.S. SEC could approve one of the three proposed bitcoin ETFs by March 11, 2017.  While some analysts have noted such an ETF would not be approved, traders are piling in anyway.  The ETF in question is the Winklevoss Bitcoin ETF, which if approved would be the first bitcoin ETF to list in the United States.

Another catalyst is the recent Congressional confirmation of Mike Mulvaney as the director of the Office of Management and Budget.  He’s also a strong advocate of the currency as the first member of Congress to accept bitcoin donations. 

Better yet, companies from Microsoft to Subway are accepting it as a form of payment. “Bitcoin wallet provider Xapo said it has received conditional approval from Switzerland's financial market watchdog to operate in the country in a regulatory breakthrough for companies that provide safekeeping for the virtual currency,” as noted by Reuters.

Even JP Morgan on a bitcoin that would allow the bank to use it in transactions.

With a great deal of momentum, it’s likely to continue reaching new highs.  Still, it’s good to be cautious at such levels with good money management.

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Learn Simple, High Probability Setups from Pro Traders. Prove Your 
Mastery of Their Strategies and Get Paid To Trade! Learn How Here

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