BTC has been performing well and my previous trade recommendation to buy the breakout has yielded ~20% profit. Now as we are approaching a possible point of resistance the questions is to take profits/short to the bottom of this wedge or to sit on the position. General trading logic would have us go short with stops just above the resistance line, however, there are a few things to take into account that bolster a bullish case for BTC.
1. We are once again trading well above all key moving averages. The period spent below the moving averages was short and showed
a quick recovery. This is a strong bullish indicator.
2. The daily RSI is still not considered overbought (by BTC standards). We are sitting just bellow 65, which may be considered
slightly high, however when BTC picks up speed it routinely posts daily RSI reading in the 90 region. This indicates that the rally
may still have room to go.
3. Lately, the current political/financial atmosphere is looking bleak. There have been further escalations in the US/China trade
war, a Brexit deal is looking ever less likely which threatens the GBP, the Chinese Yuan becoming ever more devalued, along with
countless other factors that could attribute to an economic rescission. During all this, there have been two assets that have
outperformed the rest, Gold and Bitcoin. Gold has forever been a trusted store of value and hedge against faltering economies. It
now looks that Bitcoin is emerging to fit a similar use case. Today the stock market is a sea of red and Gold is up 1.5% and BTC is
up 8-10%.
Given these factors, I am very bullish on BTC for the coming months. And if the resistance line is broken I am confident we will see 15k by the end of this week.
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Whats your opinion on Bitcoins next move??
1. We are once again trading well above all key moving averages. The period spent below the moving averages was short and showed
a quick recovery. This is a strong bullish indicator.
2. The daily RSI is still not considered overbought (by BTC standards). We are sitting just bellow 65, which may be considered
slightly high, however when BTC picks up speed it routinely posts daily RSI reading in the 90 region. This indicates that the rally
may still have room to go.
3. Lately, the current political/financial atmosphere is looking bleak. There have been further escalations in the US/China trade
war, a Brexit deal is looking ever less likely which threatens the GBP, the Chinese Yuan becoming ever more devalued, along with
countless other factors that could attribute to an economic rescission. During all this, there have been two assets that have
outperformed the rest, Gold and Bitcoin. Gold has forever been a trusted store of value and hedge against faltering economies. It
now looks that Bitcoin is emerging to fit a similar use case. Today the stock market is a sea of red and Gold is up 1.5% and BTC is
up 8-10%.
Given these factors, I am very bullish on BTC for the coming months. And if the resistance line is broken I am confident we will see 15k by the end of this week.
Like comment and subscribe!!
Whats your opinion on Bitcoins next move??