Bitcoin continues to display positive action and looks like it is ready for its' next upward cycle. When looking at the weekly chart, we can see that since capitulation took place in October after the FTX collapse, we have started to see accumulation come into Bitcoin. Bitcoin is now in a Stage 2 uptrend and looks to be in the beginning phase of its' next upward cycle. The weekly chart is starting to sketch the outline of a cup and handle base as well.
The daily chart also shows signs the bulls are in control. I like the way Bitcoin retook its' 50-day moving average with conviction today. This is a step in the right direction, but it does look like there is some resistance around $29,000-$30,000. It wouldn't surprise me to see Bitcoin build out its' right side a little more before breaking out above $30,000. For those who are patient and like me, are looking to build a large position over time, a breakout above this level would be another logical point to pyramid up. This is how I prefer to trade Bitcoin as it allows me to get more aggressive as things are working, rather than blindly plowing in all at once.
Risk right. Sit tight.
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Full Disclosure: I currently own Bitcoin and Ethereum.
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