Bitcoin touched $15,000 during the trading session on Thursday and some exchanges, and when I look at this chart the first thing I think is how overbought it is. Another thing that concerns me is that the highest volume bars recently have all been negative. Because of this, I believe that we are approaching an area that will probably cause a significant pullback. If you already own Bitcoin, that’s one thing, but getting in now would be completely reckless. Wait for a pullback, probably several thousand dollars, before you can initiate a new position. Stop losses should be moved towards the $14,000 handle for those who are traders, and not investors.
Bitcoin of course has done essentially the same thing against the Japanese yen, touching ¥1.8 million during the trading session on Thursday. Currently, we are overbought by almost any metric you measure, so wait for a significant pullback, perhaps to the ¥1.65 million level before increasing your position, or starting a new one. In the meantime, if you are out of the market, that’s where you should stay.
Thanks for watching, I’ll be back tomorrow.
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