The Real Reason Bitcoin Is Rallying to $7200...

BTCUSD got a major push last night to the upper limit of our rising wedge.

We were expecting a pull back, but insofar Bitcoin has continued to rally without coming back down to give us a good entry.

Unless it has a good set-up with a high R/R (risk/reward), I don't like to enter. Many of the altcoins have been presenting us with great R/R's, which we have taken a lot of them in our VIP group.

Right now, what we are seeing is a pushing contest between the bears and the bulls.

I believe a target of $7200 is a solid target on this Bitcoin price rally because there was something known as a "gap down" in the futures market (which you can see on the graph attached.)

Typically with gaps, there is a pull back before resuming the trend. (which for Bitcoin is currently bearish)

This is known as a Gap Pull Back trade.

For Bitcoin, the Stoch RSI is maxed on the daily, so we should get a nice pull back for re-entry around $6700-$6800 if Bitcoin doesn't break down from there.

If we don't get the pull back, the R/R (risk/reward) is not in our favor as a pull back is overdue based on the stoch.

Target for the second gap on the futures market is around $7200-$7300.

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