Tightest range since 2016 also some positive SEC information
If it feels like Bitcoin has not moved much over the past week, that’s because it hasn’t. From October 16th to today (October 22nd), Bitcoin has traded between a 2.14% trading range, or a $139.25 range. The last time it was trading in this tight of a percentage range was back in August of 2016.
The amazing constriction of this market is displayed on the chart below. instead of creating full horizontal lines, I’ve attached rays to the extremes – you can see how prices have just gotten tighter and tighter – tighter than I even though they were going to get.
If there is a funny part to this entire trading action during 2018, it’s the bears. One thing that always makes me giggle bearish comments on Reddit, YouTube, Twitter, TV chat, StockTwits, and other forums and media. One look at this screen should tell you (you bears out there) that the low was established back in February. One of the key signs of amateur trading is people who buy the tops and short the bottoms. CNBC, for example, always announces bearish news right when Bitcoin has already established a new minor swing low or a return to the February support zone. A shocking amount of new traders also make many attempts to short Bitcoin further. There could definitely be a case made for prices moving lower – but that is the least likely of scenarios and a scenario with the least amount of movement.
Pro-tip: It’s foolish to short a market that is down more than 80% from it’s all-time high and has failed to create a new low zone the entire year.
New SEC Finhub – awesome news
On October 18th, the SEC announced that they created a new Strategic Hub for Innovation and Financial Technology. This is surprisingly pro-active of the SEC. A quick look at the SEC’s Finhub homepage shows their focus: Blockchain/Distributed Ledger, Digital Marketplace Financing, Automated Investment Advice and Artificial Intelligence/Machine Learning. It doesn’t look like they are trying to overregulate these new and growing financial-technology sectors, but providing some information to major institutions seeking compliance information (if any exists) and general information. I find this very good news – not because we need more government doing more government things – but because the SEC is legitimizing cryptocurrencies by creating this new space.