# Bitcoin Basics and Technicals

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Last modified: 2021-01-19

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By Shayne Heffernan · 2021-01-19
Tags: Shayne Heffernan on Investments, Headline News, Top Stories, Shayne Heffernan, Bitcoin, Crypto, Shayne Heffernan, Bitcoin, bitcoin news, Todays Trade Ideas
Signed: no (published before platform launch).
Nothing in this article is investment advice.

**What is Bitcoin?**

#Bitcoin is a convertible virtual currency. Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.

**Is Bitcoin a commodity?**

Yes, virtual currencies, such as Bitcoin, have been determined to be commodities under the Commodity Exchange Act (CEA).

**Does the CFTC oversee Bitcoin?**

The U.S. Commodity Futures Trading Commission’s (CFTC) jurisdiction is implicated when a virtual currency is used in a derivatives contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce.

**What risks come with virtual currencies?**

While virtual currencies have potential benefits, the market overall is largely unregulated, so beware.

**Virtual currencies:**
• Are commonly targeted by hackers and fraudsters
• Have no assurance of recourse if stolen
• Involve e-wallets or storage that present cybersecurity risks
• Carry speculative risk plus fraud and manipulation risks

Bitcoin closed up 63.449 at 36,177.801. Volume was 59% below average (consolidating) and Bollinger Bands were 22% narrower than normal.

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the bullish or bearish trend reflected in the lower ribbon.

### Summary

Bitcoin is currently 0.1% above its 200-period moving average and is in an upward trend. 

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

Volatility is relatively normal as compared to the average volatility over the last 10 periods. 

Our volume indicators reflect volume flowing into and out of Bitcoin at a relatively equal pace (neutral).

 Our trend forecasting oscillators are currently bullish on Bitcoin and have had this outlook for the last 22 periods.

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

Overall, the bias in prices is: Upwards.

![](https://livetradingnews-media.nyc3.digitaloceanspaces.com/wp/placeholder.svg)

A white body occurred (because prices closed higher than they opened).

During the past 10 bars, there have been 5 white candles and 5 black candles. 

During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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