Bitcoin
Let’s make this brief. Bitcoin has been on the move. I wrote about the imminent breakout on November 3rd HERE. At the time, Bitcoin was trading sub $70,000. It is now touching $99,000, an almost 50% move.
For those of you that are lifetime holders, this post is not for you.
For traders, this might be of value. I am not calling a top in Bitcoin, but what I AM doing is taking profits at a sensible area.
Everyone is talking about $100K. Sometimes the area everyone talks about becomes a self fulfilling prophecy. We are inching there as I write this. In my experience trading, nice round numbers often become pivot points.
We also have a measured move. Look at the chart below.
Bitcoin
Price consolidated between $48K - $73K range, a $25K range. Price broke out explosively and has moved $25K to the upside, where we are currently sitting, give or take.
This trade meets all my criteria and I have taken profits. I’m perfectly okay with missing any additional upside.
I’m also okay buying back on a dip below the range if we get it.
Lastly, the 150 day moving average - orange line in the chart below. Price ALWAYS comes back to it’s mean…sometimes by price coming down, and sometimes over time to let the moving average catch up. Here is a long history of Bitcoin. How many times did it get THIS stretched above the mean? And what did it do when it did get stretched?
Either way, I’m comfortable taking a 50% profit in 3 week. A win is a win and I’m here to win.
That’s all for today. I wanted to share my thoughts on Bitcoin.
Eric