Bitcoin Setting Up Extremely Well In An Ascending Base Pattern
Bitcoin looks like it is poised for another strong move higher as it appears to be forming an "ascending base." Popularized by William O'Neil, this is a rare pattern where a stock, or in this case, a cryptocurrency, pulls back three times with each low higher than the previous low. What I love about Bitcoin's chart is the fact that it continues to be bought every time it approaches an old price high. Old resistance becoming new support is textbook bullish behavior. This combined with consistent support at the 10-week moving average provides evidence that the uptrend in Bitcoin is far from over. I've been bullish on Bitcoin since the fall of 2020 and added to my position earlier this year and again earlier this month. If Bitcoin breaks out to a new price high, I may add some more, but not enough to raise my average cost drastically. As always, I will have a stop loss in place to reduce my position if the trade runs against me.
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Full Disclosure: I currently own Bitcoin, Litecoin and Ethereum.
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