Bitcoin in 5 Charts

I analyze Bitcoin's price action + Gold vs S&P 500 + several other bullish charts

Let’s take a look at the chart of Bitcoin. Before we do, understand I’ve never been a laser-eyed, true ‘believer’ of Bitcoin, but I have traded it when the opportunity was compelling enough. I don’t like things I can’t see or don’t understand but I guess that’s on me. Physical gold and silver I can see and touch. Gold has been around for thousands of years. For me, gold is my hedge against reckless government spending and the intentional devaluing of the dollar. But Bitcoin…well, let’s just say it’s not gold. Maybe that’s a good thing. I’m open to it, I just don’t get it. I get the idea behind it; it’s an alternative currency to our eroding fiat currency. I’ll leave it there.

Curious, however, how many of you own Bitcoin…and for the record and as a TRADE, I do.

---

In any event, it’s a chart and I like charts. THAT is something I can see. THAT is something I can understand.

So let’s get to work…

BITCOIN - 5 Charts

Chart 1️⃣

• No lines. No drawings. No bias. (actually, that red horizontal line is TradingView telling you where current price is)

• Daily chart over last 3 years.

Bitcoin

Chart 2️⃣

• Cup and handle pattern - bullish

• CUP: Steep downtrend, consolidation, then upswing to previous high

• HANDLE: 8 month consolidation in a range from $50K-$70K

• Ready to breakout?

Chart 3️⃣

• Let’s zoom in a bit to the last year +

• Another way to look at the chart - price consolidating sideways in a range

• Break above clear resistance for a breakout?

• Or a retest of the up sloping support line - bottom blue line

Chart 4️⃣

• Drawn yet another way

• Price broke out of obvious resistance and is now retesting breakout

Chart 5️⃣

• Blue line - 50 day moving average; price moved well above it and may need retest

• Red line - 21 day moving average; 21 above 50 - bullish

• You can see on the chart price was making lower lows as designated by the orange circles

• Double bottom reversal - green horizontal line

• Price marching higher in a ‘higher lows’ fashion - green circle

🧐 Final Bitcoin Analysis

Chart analysis is in the eye of the beholder. These charts are what my eyes see. You may see it differently. To MY eye, there are several technical factors telling me Bitcoin is likely headed higher. Nothing guaranteed. Technical analysis is about the odds.

If price does NOT break above current resistance or if price breaks the pattern of higher lows, then my analysis changes. If price breaks below the 50 day moving average, then my analysis changes. These MUST hold. If they don’t, then my analysis changes. That’s the beauty of being a trader. Rules, not opinions. I change when the chart changes.

For now, I’m long Bitcoin since the $61K area (as a TRADE) and have set my stop loss just below the wick at $65K. My stoploss locks in and guarantees a profit.

Okay, enough about Bitcoin, let’s look at more charts of stocks I’m looking at.

First, the chart of GOLD vs the S&P 500 then a few other BEAUTIFUL charts.