Bitcoin continues to set up well in what looks to be a cup and handle base. I have been monitoring bitcoin closely this year and have been building a position over various buy points since the summer. There are a few fundamental and technical factors that keep me bullish on bitcoin. From a macro perspective, if inflation becomes a major concern, I believe more funds will continue to flow into bitcoin and cryptocurrencies on the whole as the dollar declines in value. The limited supply of bitcoin is likely to further increase its' demand.
From a technical perspective, Bitcoin has been acting exactly as it should. After finding support off the $30,000 level, it has mostly traded above its' 10-week line, which is a very positive sign. In addition, after breaking above the $50,000 price range, it has found support at its' 20-day EMA-another sign of strong technical action. I added to my position today as bitcoin cleared recent resistance. I have a stop loss in place below recent support to keep risk in check.
Risk right. Sit tight.
-Tom
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