I recall (but can’t find now) a phenomenon that stock prices when approaching $100 are nearly certain to hit that round number. This happened more reliably than a stock hitting another number the same absolute number away: so a $95 stock is more likely to hit a $100 price than a $92 stock hit $97.
I think that is even more the case with indices, and especially so when speculative potential is high.
Last night I wasted too much time watching the specific price movement of bitcoin as it (again) approached $10k.
Here was the Coinbase Pro order book at 10:01 Eastern:
The very heavy number of standing sell orders at the round number should in theory have dissuaded people from bidding up to the number in question. That is over 2% of daily volume sitting there.
When one of these landmark numbers is met, there is often a follow on movement in the same direction and last night was no exception:
The market has cooled slightly in the last twelve hours, at $10080 as of this writing at 2 pm.
There is a unjustifiable sentiment I have – foolish maybe even only $80 from this level, but there is feeling I have this could be the last time we’ve seen four figure bitcoin prices. I don’t want to chase this price, and the next buy level might be just above 2019’s highs several thousand dollars from here. It’s been an exciting five weeks for this supranational currency, and still regret not understanding the upside of it better back in its four figure days not so long ago.
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