The Winklevoss twins and Zuckerberg went to sleep dazed after setbacks yesterday.
Back in 2003, Tyler and Cameron Wilklevoss hired Mark Zuckerberg to do some programming for a dating website at Harvard. All were undergraduate students. That effort ending up morphing into a little thing called Facebook.
Zuckerberg took that platform and ran with it. The Winklevoss's were left in the dust and later sued ZUck.
They ended up getting a cash settlement of $20 million cash and a share of Facebook (not yet public). That led to an additional $200 million when FB went public in 2012.
The Winklevoss's took part of that money and bought up 1% of all bitcoins in circulation at the time. That would have cost them around $1.2 million. Bitcoin was trading at about $10 a coin then.
The price of Bitcoin traded up to $8500 earlier in the week (and near $20K at the highs). All things equal, that investment is worth over 1B now (was twice that at the highs of course). Still, not a bad chunk of change (I don't know if they still have FB stock but that has not done too poorly as well).
Meanwhile, Mark Zuckerberg has done ok as well. Before yesterday, the value of his FB shares was about 75 billion.
That all changed a bit yesterday.
As we know, yesterday was not a good day for Facebook. The price plunged about 20% and the value of Mark Zuckerberg's stock went down about $15B in the process (according to reports). So instead $75B his stock is now worth only $60B. A little shot to the stomach.
Meanwhile, the Winklevoss twins also took a blow.
A proposal by the twins to list an exchange-traded fund tied to the cryptocurrency was rejected by the SEC late yesterday. The agency had rejected the fund in March 2017.
This time regulators said the bitcoin market, is too susceptible to manipulation.
The news also took the wind out the sails of the SEC approving a bitcoin fund, which had been fueling a recent rally across the market for digital currencies.
As a result, Bitcoin has moved from a high earlier this week at $8488 and currently trades at $7823. It's not the 20% decline like their old Harvard buddy endured, but it is 7.8% decline so far from that high.
It was not a good day for the old Harvard buddies. I wonder if the Harvard endowment fund took a blow too?
Looking at the price of Bitcoin from a technical perspective, the price stalled at the highs near the 200 day MA (green line in the chart above) at $8547.58. The high for the week reached $8488 - close but not quite to the MA level.
The fall has taken the price closer to the 100 day MA (blue line in the chart below). That MA comes in at $7607. The low today reached $7787 so far. Again close but not quite to the MA level. A move below that MA, would be more bearish for the digital currency.
Drilling to the hourly chart, the fall today has taken the price below the 100 hour MA (blue line in the chart below). That MA currently comes in at $8073.73. Stay below is more bearish.
The price fall, has taken price toward the 200 hour MA which comes in at $7752. That level is key now.
A move below that MA would be the first dip since breaking higher on July 16th. That was the start of the run higher for the digital currency in July. The break of the 200 hour MA started around $6400. At the high this week, that was good for a 31% gain.
Combining the technical levels from the daily and the hourly chart, the $7752 is key on the hourly (200 hour MA).
Not far below that is the 100 day MA at $7607.
Those will be key technical levels that the Winklevoss's and other bitcoin longs, should be eyeing. Stay above and not so bad. Move below and there should be more erosion to the price rise.
As for Facebook, the price gapped below the 100 and 200 day MAs at $183.519 and $181.566 yesterday (blue and green lines) .
The high corrective price since that break, came in at $180.13 - below those MA levels. Stay below is more bearish. The technicals are not looking good
Overall, it was not a good day for the old Harvard buddies. Bitcoin is holding on above key support. Facebook is not looking good below it's key MAs.
As for the Harvard endowment, it was a bad day, but I am sure there will be brighter days ahead as they pump out more future billionaires. There are probably a few working on some ideas in your dorms right now. So not to worry.
