Overnight, bitcoin has breached yet another resistance at @7,800 coming out of the reverse head and should bottom. The upside seems pretty aggressive breaching the second shoulder in less than 3 days instead of the expected 9-12 days.
source: https://www.worldcoinindex.com/coin/bitcoin
Bitcoin took 9 days to cross the first resistance @6,800 from the top of the 2nd shoulder. It also dipped to 6,400 prior to resuming its ascent. This isn't the case @ 7,800 resistance where bitcoin flew by the shoulder without dipping and lingering for at least 10 days prior to its uptick The reverse and shoulder pattern doesn't have to be perfect though.
The 3rd resistance is at 10,000 and at the time of writing, bitcoin is almost complete with the symmetrical triangle - a bullish continuation signal.
source: https://www.worldcoinindex.com/coin/bitcoin
Bursting through the 10,000 mark would signal a very bullish scenario ushering a new bull market that we have never seen before and could save us from watching John from eating his balls on national television:
However, if bitcoin fails to break the 10,000 resistance, it could be a long long journey to its ATH. I guess we should warm up our TV set for John's adventurous stunt.
Perhaps the biggest catalyst of bitcoin's attempt to push through the 10,000 mark is SEC's decision to approve or reject the first bitcoin ETF authored by CBOE. If we may recall, the Cboe submitted a Bitcoin ETF proposal to the U.S. Securities and Exchange Commission on June 26, 2018 which garnered overwhelming support. The latest news has it that the odds are now the favor of the bitcoin supporters who are eager to see the ETF approve: Bitcoin ETF 90% Chance of Approval. August 16-19, 2018 is the big decision day for the SEC to announce the verdict.
For the next 23 days leading to SEC's decision, it would be interesting how bitcoin performs.
Disclosure: This post does not intend to provide investment nor does it represents that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the article in the process of making a fully informed investment decision.
Spit up my coffee on that one, lol.
Not sure what the implications of a Bitcoin ETF would be, as I do nto have a grasp on the nature of ETF's. If it wouldn't be to complicated, could you in a few sentences explain how this would benefit Bitcoin other than respectability?
Hope your coffee wasn't too hot. Two reasons - (1) inflow of more money from institutional investors and, (2) positive sentiment regarding regulation from the SEC.
The first bitcoin futures launched in Dec 2017 put over 10 billion of institutional money into bitcoin; unfortunately though, bitcoin was at an ATH at that time and most of that money was used to short bitcoin. Now bitcoin is at the bottom of the correction hence money from the ETF could be used to load up more coins to ride the bull.
The main difference between futures and ETF is that only big players can buy futures because of the size of the contracts. ETF, on the other hand, are like stocks so anyone (small and large investors) can buy into bitcoin at whatever amount.