Bitcoin market update weekly 2-12-2016
Between the hard folk discussion, blockstream core and the altcoin pump, we in theory should have seen market drift lower if not crash. Some on on r/btc and r/bitcoin have lost faith in the cryptocurrency ecosystem. Most and I were expecting much lower prices.
Yet, here we are, with price drifting slightly higher day to day. It boggles my mind sometimes that this would occur. Is it someone with a strong hand buying? This certainly didn't come from bfx margin or open interest on futures. As a technical analyst, I see price drifts up, the why can wait. The phrase, climbing the wall of worry comes to mind. Investopedia says it best:
The financial markets' periodic tendency to surmount a host of negative factors and keep ascending. Wall of worry is generally used in connection with the stock markets, referring to their resilience when running into a temporary stumbling block, rather than a permanent impediment to a market advance.
This reminds me of a time in 2009 when the counter rally started after a bottom. Stories like Madoff, citibank and wamu were still fresh in our minds. Every week, housing prices fall, unemployment claim rise, and more banks fail. Yet, price continue to drift high like clockwork. Although bitcoin price is still within a consolidation phase, you can see signs of it making lower highs. I think a break out above 390 and psychological 400 would push market much higher. On the contrary, if something disastrous were to happen, a break below 360 is a tell-tale sign of a selloff.