It’s been another volatile week for bitcoin, but closing above $9,000 is good news.
Earlier this week we noted that bitcoin had tentatively flipped back to bullish mode. In fact, it looked set to push above the closely-watched $10,000 mark, rising as high as $9,755 (Bitstamp).
However, these moves rarely happen as decisively and cleanly as that. You’ll remember that earlier this year, the bitcoin charts described a ‘Death Cross’ formation: when daily 50 moving average crosses the 200 MA. The 200 MA is currently just below $10k, and bitcoin bounced back off it from its high on Wednesday. That’s only to be expected, since traders will naturally be wary of such a big milestone and are likely to take profits and de-risk as the price approaches this zone. The chances are it will need a couple more runs at least to push through the 200 MA and over $10k.
That retrace saw a $1,100 drop down to $8,654. BTC has since climbed back over $9,000 and is currently sitting around $9,300 – where it was at the beginning of this week. It’s still out of that downward channel and still over $9,000, so there’s been no fundamental change in the last few days.
In other news, the 17 millionth bitcoin has now been mined, meaning there are just 4 million more to go. Binance has surpassed Deutsche Bank in profitability, which isn’t at all embarrassing for Germany’s largest bank (https://www.ccn.com/binance-surpassed-germanys-biggest-bank-deutsche-in-profitability/). Binance’s second-quarter profits were $200 million. Meanwhile another potential smart contract bug was discovered, prompting major exchanges to halt trading of ERC20 tokens. The concern was that the batchOverflow bug would enable an attacker to create millions of new tokens, which could then be dumped on the market.
Lastly, Bill Harris, former PayPal CEO, has told CNBC that bitcoin is the ‘greatest scam in history’ (https://twitter.com/CNBC/status/989622582352711681). Doubtless no one will be surprised that this particular turkey has declined to vote for Christmas.