«Bitcoin Bolsters, Risk On!»
It’s been a wild six months or so in the markets. The Bears took a stranglehold on the markets at the very start of 2022 and controlled it tightly until just these past few weeks. No one asset class was spared in the carnage and the Crypto world was no exception, despite the claims from many of its proponents that it would fair better in a down market.
The big dog of the Crypto world, Bitcoin, fell just shy of making the $70K mark and then took a nosedive all the way down to under $19K. This was a very strong drop, however there may be sunnier times ahead for the digital currency as it has put together a string of higher highs and higher lows on the chart after putting in a strong double bottom which is the base from which it is mounting a comeback. More impressively though is the current setup and that is a high base around $24K which appears to be breaking out today.
The other little boost for bitcoin is the formation of the moving averages which are tightly coiled together and that sometimes leads to a very strong move in one direction or the other and I would favor a bull run as opposed to another bear run in Cryptos.
Now, the thing to remember is that bitcoin is a volatile asset class at the best of times and should be treated with the respect that it deserves but having said that it sure feels like Crypto is Back!!!
Video of the Day: How to use the Position Sizing Tool in TradingView – Gino’s Gem
Coach Gino explains how he uses the Position Sizing Tool when using the charting software Trading View in this Gino’s Gems.
Chart of the Day: Bitcoin Futures (/BTC)
This futures contract follows the price of bitcoin and is leveraged like other futures contracts meaning that one can trade this product with less than full capital but one must remember whenever using leverage it can cut both ways. The current technical setup on bitcoin looks strong for a possible breakout to the upside of $24K.
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