Now there are all gates open for the next run to $100.000. Of course, it will not shoot up directly to the moon, but rather meander more often up than down and drive traders dizzy!
But not us, see below…
After the first attempt twelve weeks ago and then the astonishing outbreak from $4000 about six weeks ago, about which the market murmured that it had been concerted by some “crypto-whales”, bitcoin drifted slowly higher and did again a jump (see the middle weekly chart) to $8000.
There is still one caveat.
Some noise from the regulators.
The FATF (Financial Action Task Force) may go ahead recommending globally sometime in June a requirement for crypto-exchanges and web-based wallet providers to annotate every payment including cryptocurrency transactions with the verifiable identity information of the sender.
This would be a major hurdle for our brave new crypto ecosystem!
Typically these FATF ideas may materialize only years later, and only in countries that adopt them, enacting locally a corresponding law.
But in such a case it is hard to see how exchanges and other crypto companies could bow to this privacy corrupting demand, because identity data attached to a crypto transaction is not verifiable.
The only way out some of the affected companies may have, is to close doors or to relocate their incorporation to another country with a more crypto-friendly attitude.
Is this the revenge of the governments?
Nonetheless, until the dust settles, we are going to trade bitcoin and when things are running smoothly, we’ll switch the trading system off and stay invested.
To get onto the bitcoin trend, enter it with Pipdaq, our short-term naked-chart entry or trading system.