Tackle Today: In Praise of Bitcoin
August 23, 2021
It’s so well-behaved right now
Traders,
Coach Tyler here. Another weekend has come and gone, and Bitcoin scored a major breakout. This is the third weekend in a row that the crypto king zipped through significant resistance for those who haven’t been paying attention. The consistency is becoming uncanny, and it’s the primary reason why bitcoin demanded I say something this morning.
One of my favorite reasons for trading bitcoin has to be just how well it toes the technical analysis line. What I mean is it behaves exceptionally well around key price levels. I think the reason why is obvious – there isn’t anything else to go off of: no earnings, no future cash flows, no nothing. Thus, analyzing supply and demand is the only game in town.
And that’s what technical analysis is all about!
The last two times Bitcoin ran into overhead resistance ($41k and $47k), I explained what I thought would happen during my Wednesday appearances in the Halftime Report. I even drew out the time correction that would transpire.
And, guess what?! It did exactly as I mapped out – both times. I bring this up, not to beat my chest. I’ll be the first to admit it was pure luck. But it illustrates an important point. I laid out what price should do if it continued to play well with technical analysis. Strong trending stocks usually do pause for a week or so after hitting resistance. Then they break out.
Bitcoin did what any well-behaved asset does. It skirted sideways while soaking up supply – then it jammed higher. Chartists have to be loving bitcoin right now. At some point, uncertainty and unwanted volatility will return. Until then, enjoy the newfound uptrend.
#TeamTackle
Chart of the Day
Bitcoin’s Beautiful Uptrend
| If you squint, you can see the light red lines I drew when bitcoin prices first tested $41k and $47k. The next ceiling isn’t until $58k, so consider that the logical target over the coming weeks. |
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Video of the day
Coach Frank’s Charts
Coach Frank always brings us some beautiful charts to look at. Check out the segment starting at around 39.00.
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