Bitcoin Price Analysis December 11, 2017, Technical Analysis

Bitcoin has been out-of-control for the last 48 hours, and quite frankly longer than that. Depending on which exchange your trading on yesterday, you saw the value of Bitcoin reach $16,500, or perhaps even almost $20,000. The lack of liquidity in the marketplace and the thunder of an institutional class ready to jump in is going to continue to cause major issues. While this initially seemed like a great thing as Coinbase printed a price close to the $20,000 handle, this brings up several of the issues with the crypto currency space. After all, how would you feel if you were at BITSTAMP, and $4000 less profitable than the other traders? This shows the inherent problem with Bitcoin, and convinces me more than ever that the government is going to step in. I know this flies in the face of what most people believe about Bitcoin, but the reality is that the government can regulate the market, because it has the ability to regulate anything it deems a security, or a currency. If it does, this ends the game in the United States as we know it.

Get Into Bitcoin Trading Today

BTC/USD Video 11.12.17

However, from a technical analysis standpoint I have to ask question if the hammer on the hourly chart that extended below the $14,000 level on the BITSTAMP exchange signal some type of bottom going into the weekend, or if we are forming a bullish flag that could signal a move much higher. This is the problem with analysis right now, because the liquidity of the market is so thin that it cannot hold the volume that has been jumping in. Because of this, I would not be a buyer until we got above the $16,000 level, and even then, I would be very cautious about my position size. Alternately, if we break down below the $13,500 level, that could lead to a move down to the $12,000 handle rather rapidly.

The question I keep getting emails about is what will the futures market do for the value of Bitcoin? The honest answer is that nobody truly knows, but I suspect it is going to disrupt this market and starting next week, Bitcoin markets will have changed for good. Most of the money managers I know are thinking that futures markets may provide a short-term left, but big money will come in and start shorting this market, crushing the value as a parabolic move to the upside cannot last that long, and the professionals certainly know this. They tend to sell to the general public when price has gone too far, and we are starting to see several IRA accounts offered in the United States featuring Bitcoin for retirement. It looks like Wall Street could very well stick it to Main Street again. Be very cautious.

Buy & Sell Bitcoin Instantly