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.
If you are interested in using Coinbase to purchase Bitcoin and would like to receive a $10 sign up bonus, use this link.
Full Disclosure: I currently own Bitcoin, Litecoin and Ethereum.
Full Disclosure: This post contains an affiliate link to Coinbase.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.