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On today's show:
Don’t look now but the storm may be clearing after Bitcoin bounced off $6,000 and the US Senate hearing on virtual currencies went rather well.
Story - US Senate Hearing
Yesterday the US Senate Committee on Banking conducting a hearing on Virtual currencies.
It last about 2 hours and the livestream is archived on the senate website link that I gave out yesterday and will include in the show notes for today:
https://www.banking.senate.gov/public/index.cfm/2018/2/virtual-currencies-the-oversight-role-of-the-u-s-securities-and-exchange-commission-and-the-u-s-commodity-futures-trading-commission
The general consensus in the crypto community, especially if you look on Reddit, is the hearing was very positive and we seem to have somewhat of a new friend in the form of Christopher Giancarlo who is the chair of the US Commodity Futures Trading Commission.
He opens 32 minutes and 40 seconds into the recording with a personal story about how his college age kids were unresponsive when he and his wife set each of them up with a brokerage account and encouraged them to get into the stock market.
He goes on to say that when his kids discovered Bitcoin, their level of enthusiasm went up significantly.
The key quote that has now been turned into a meme is when he says “It strikes me that we owe it to this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response not a dismissive one..”
When he says “We owe it” to me that’s a subtle recognition of the fundamentally different economic environment that exists now vs pre-2008 financial crisis.
The investment banks get the blame for causing that crisis, but really it started with the government forcing the banks to lend to people who had poor credit and where therefore high risk.
But anyway, as I watch this fellow, he seems like a balanced guy, rather than a stereotypical government regulator on a power trip.
https://www.coinigy.com/main/markets/BITF/BTC/USD
Like we always say there is no real way to know EXACTLY why the markets move in a certain way, however, the two forces that coincided yesterday were the relatively positive hearing results and the fact that Bitcoin bounced off of $6k and has been rising ever since.
It actually hit $6k at 7am London time yesterday and I had the hourly chart open for most of the day as it gradually rose up to where it is now above the 50 hour moving average.
This is where the blue average line on the volume chart is useful because it makes it easier to see how the volume picks up the closer the price got to $6k.
That seems to have been enough to kickstart somewhat of a recovery.
However… just like we see during an uptrend, the price pulls back to the trendline, the same thing applies in a downtrend.
I want to see a break up at least past $8,300 because that is when the bottom really fell out of the market on the way down.
So if we get back above that and hold, then we get back up above the 200 hour moving average we’ll be in good shape.
Then it’s just a case of breaking the round numbers, $10k and so on. Each time confirming the strength of the recovery.
I am now just an observer in this. I published the details of when I made my move and what coins I bought and I’m still holding those positions.
https://steemit.com/bitcoin/@marketingmonk/the-8-cryptos-i-bought-in-the-crash-when-and-why
If you missed the article I published called
The 8 Cryptos I Bought In The Crash, When and Why
You can catch it on my Steemit account.
It’s Wednesday which means I have to make sure I create a new lesson for my trading course today, so I’m going to leave it there.
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