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Traders,
Did you catch the narrative surrounding the past month’s boom in bitcoin? Some say it was due to the hype surrounding the world’s first U.S.-based bitcoin ETF. More accurately, it’s the first futures-based bitcoin ETF. Whether or not you buy into the explanation doesn’t really matter. The fact is something has had the crypto king flying high, and fanboys are flocking.
If you were afraid to chase /BTC to the moon, you now have a more palatable entry after this week’s retreat. We’re now testing the rising 20-day moving average and an old resistance zone near $59k. So far, the ceiling is holding as a new support zone.
But I wouldn’t rule out the chance of a bit of volatility arriving to mess with what has so far been a relatively easy pattern to analyze. And that brings up what is arguably the most critical point of this message. Say what you will about Bitcoin and crypto, but they may well be the purest and most technically traded instruments of all time. The reason is simple. There aren’t any earnings or other fundamental nonsense to muddy the waters.
The price of Bitcoin is in the eye of the beholder. Its movement is a function of supply and demand. And that makes it behave very well with trends, support & resistance, volume, and all other technical tools.
#TeamTackle
Chart of the Day: Bitcoin’s Bull Retracement (/BTC)
/BTC can pull back further if it wants, but bouncing at the rising 20-MA would sure maintain the cleanliness of its powerful uptrend.
Video of the day
How to Trade the Volatility Crush after Earnings Reports with Options – Jedi Options
Coach Tyler teaches how to trade a post-earnings report Volatility Crush on Google.
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