I’ve had some small position in bitcoin ever since it was back at $250.
Mostly, I’ve wanting skin in the game of the cryptocurrency as it keeps my attention on the daily moves.
Back then, the price doubled quickly. I sold off half my position, took the money out, and let the house money ride. It quickly went up to $1,000 and I recall being frustrated I sold half. Oh well, that’s the never-ending roller coaster of trading.
For the past many months, bitcoin has been mostly range bound between 9,000 and 10,000. In this one year chart you can see that range. There was the down move during the early months of the pandemic and then the price moved back into the range bound trade.
In August, the price broke above 10,000. Since then it has moved back down and tested this price level which has turned into a new floor of price support.
Taking a longer view in this 4 year weekly chart…
…you can see that 12,000 is a key price level.
If bitcoin price can break 12,000 with strength (consistent volume) there is a lot of room to run higher.
In addition, most people I know that hold bitcoin have no intention of selling it anytime soon. It is a good hedge to the fiat U.S. dollar.
Did you know that over 20% of the U.S. dollars in circulation right now were created THIS YEAR!
I’m one of those people and will continue to add to my bitcoin position as I am able.
You can also trade $GBTC is you want a proxy for bitcoin and have not yet set yourself up to be able to purchase and/or trade bitcoin.
Watch that $12,000 level closely.