- Another 8% gain would push the Bitcoin price to 14K
- A major correction could be on cards
Bitcoin smashed another record high of $12,882. It appears that the momentum is unstoppable and we do think that the 14K level could reach before the bitcoin futures start trading on the CBOE (which is on the 11 December). In terms of percentage, we are only talking about 8% gain from its record high.
Principally, investors are thoughtful that when institutional money (hedge funds) will be involved, the chances are that the price would move higher. Large investment funds have not been able to take the piece of the pie yet and that would be their opportunity for them to get on board.
Bitcoin futures trading on the major stock exchanges would provide more assurance for retail investors that the derivative is trading in a regulatory frame work. This would provide tail wind for bitcoin.
Having said this, it is also important to remember that there are some hedge funds which are waiting for the momentum when futures will start trading and they can short Bitcoin. They are highly interested in this speculative market and cannot wait to take the froth off.
So, the question is where the price of bitcoin will go if we do see a major correction? Your moving averages do provide a good starting point for this. The 50 day moving average is trading at $6888 and the 100 day moving average is at $5315 and the two hundred moving average is at $3563.