Facebook announced strong possibility of its own currency and Bitcoin crossed 5,700. What is next?
Traders have taken their focus off from the biggest event of the day because of Bitcoin. They are completely dazzled, the Bitcoin price has crossed the level of 5,700 and this is all due to the strong price momentum which have been building up for the last few weeks. If you have not paid attention to the Bitcoin price action, now is the time. The price has been trading above the 200-day moving average, a major bull signal. Another significant bull signal also comes from the 242-day moving average, the back test results on a daily time frame shows some solid results.
Another reason which has instigated this move is the news that Facebook would be using cryptocurrency for its platform, this a huge development. We all know that Uber IPO is the most hyped for this year, but the fact which hasn’t gained much attention is that Uber also has strong commitments to develop a digital wallet and this means cryptocurrency. All of this support the demand for Bitcoin
In terms of price action, I think the doors are wide open for the price to kiss the level of 6,000 and then 6,500 but the price levels which are going to bring the real excitement in the market are when it breaks above 8,000 and 10,000. This is because it would trigger a massive FOMO among retail and institutional clients and the compounding effect may take it further if the ETF gets approved in around that time.