Bitcoin May Be Forming A High Tight Flag
Bitcoin has been on a spectacular run over the past three months and is showing the possibility that it is not finished yet. I bought Bitcoin and GBTC throughout 2020 (blog post here) and exited my position at multiple levels, concluding at around $29,000. After monitoring Bitcoin over the past few weeks, there are a few things that have caught my eye.
First, it's just remarkable to see such as large move digested so well. After exploding from around $20,000 to $42,000 in about a month, Bitcoin has found support at around $30,000 and continues to hold above its's 20-day moving average. This is just incredible as it indicates Bitcoin holders are not interested in selling just yet. It is very possible that Bitcoin may be forming a high tight flag here. If Bitcoin can continue to hold up in a tight and orderly fashion over the next few weeks and clears its prior high with conviction, it can easily rocket to $75,000 in my opinion. High tight flag patterns are explosive patterns and if played properly can yield enormous gains rather quickly. With an emphasis on risk management and position sizing in mind, Bitcoin is worth keeping an eye on to see if it can complete its' high tight flag pattern.
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Full Disclosure: I currently own Bitcoin and GBTC.
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