Technical Analysis

Bitcoin makes a break for it before stalling at the November high


Bitcoin began to spring to life on Thursday and has gone straight-vertical since as risk assets globally spike. The high was $21,292 where it ran into some sellers just ahead of the November high. Last was $20,812, up $1001 on the day.

I take this as not-only a good sign for crypto but for risk assets in general. That said, there are warning signs here as well with seven straight days of gains and meme stocks running. It seems that whenever the Fed cracks the door open an inch, a flood of money comes back in. Perhaps that’s a sign that the bulls are still in control but it’s also the kind of thing that will make the Fed want to push back higher.

For the next few days my big worry is that the Bank of Japan pulls out the rug on the largest experimental money policy in history.

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