Bitcoin Setting Up Well For Another Move Higher
Over the past two months, I have been monitoring Bitcoin closely for a potential bottom. After exhibiting some bullish divergence action in June, Bitcoin continued its' constructive action by showing consistent support near the $30,000 range. I opened a position as Bitcoin cleared $37,500 on volume. Since then, Bitcoin has been acting really well, calmly pulling back towards its' 20-day EMA. On a higher-time frame, Bitcoin's weekly chart looks fantastic. As previously noted, I like the consistent support off the $30,000 level. In addition, the heavy volume move above $37,500 followed by the tight pullback more recently is extremely constructive action. Should Bitcoin clear the $42,500 level on volume, I will look to add to my position. If Bitcoin has indeed bottomed, it is very possible that we may see prices over $100,000 by the end of 2021. What really intrigues me is that very few people see it. While Bitcoin was the talk of the town in May, the 50% decline seems to have wiped away the excessive bullishness that was permeating crypto a few months ago. The fantastic action we have seen in Ethereum over the last two weeks is also a very bullish sign for crypto on the whole.
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Full Disclosure: I currently own Ethereum and Bitcoin.
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