Bitcoin is going parabolic again. I have no idea where it will stop this time. Last time I called the top in Bitcoin almost to the day. You can read about it here. I do not sense the same mania phase. I do not know if most people realize this but there are Bitcoin futures. I have not traded them in some time. I trade on breakouts. Bitcoins breakouts almost complete the pattern the same day.
For instance, on a close above 20K it completed an ascending triangle. The problem for me is that it ran up so far away from the breakout point I could never get a good entry with a good stop in place.
Even on the longer term chart, I seen the head and shoulder pattern forming a few weeks back. I was never able to get a good entry point. The market just runs away.
The volatility is bad enough, but the leverage on this contract is too much. I would never be able to sleep at night.
To enter one contract requires over $49,000. I risk a very small percentage of my trading capital per trade. I know there are other exchanges that sell fractions of bitcoin, but the last thing I need is another account.
There was a time when I thought Bitcoin was going to zero. My thinking has changed over the years. These cryptocurrencies might be around for a while. I have no idea what they are going to be used for other than a speculative vehicle. No one has yet to explain this to me. With price swings like this it will not be used as a currency.