Bitcoin Sets Up In Textbook Fashion

Bitcoin is currently setting up in a textbook fashion in a cup and handle base. This is as good as a setup can get and looks like a fat pitch. Everything is seeming to align here, with the general market starting to heat up and more funds and institutions starting to buy Bitcoin.

There are a few things that make Bitcoin chart a textbook setup. First, I really like the way it held up in April while the S&P 500 came in. This is a blatant sign of relative strength, as those who held Bitcoin were reluctant to sell despite all the fear around tariffs. After rallying, Bitcoin pulled back calmly on lower volume. This is exactly what we want to see as it indicates there is not much heavy selling taking place. Moreover, the fact that Bitcoin has not closed below its' 10-week line since mid-April is another sign that a strong uptrend may be emerging.

The icing on the cake is that the average person does not seem to care. Take a look at the Binance crypto sentiment indicator and the CoinMarketCap Fear/Greed indicators. Both are reading neutral. Overall interest in Bitcoin is actually extremely low when you look at Google Trends.

When you put all of these together, you get the recipe for a strong move. The new emerging theme of crypto, combined with a textbook looking chart setup in a strong general market, with the average person not caring means that there is money on the sidelines that will soon find its' way into Bitcoin once it makes a new high. This is a textbook setup if there ever was on.

Risk right. Sit tight.

Full Disclosure: I currently own Bitcoin.

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