GBTC Showing Strength
GBTC has been the vehicle I use to get exposure to Bitcoin over the last three years. Bitcoin is extremely volatile and that can be a double-edged sword. Trading Bitcoin can be frustrating since it may look very strong one day only to fall over the following weeks leading to a loss. Some traders will cease to watch Bitcoin after being stopped out a few times. However, I've found that when I catch it right, Bitcoin can be a huge winner. I had a 10R trade in 2019 trading in Bitcoin and this more than made up for a few small losses I had trading it earlier in the year. I discuss this trade in my course Market Bottoms.
Bitcoin is often a hotly-debated topic. Many think it is worthless garbage while others proclaim it is the wave of the future. For me, it's just a chart. If I like the risk to reward and the set up, I take the trade. If I get stopped out, no big deal. If it heads higher, I have the potential for a huge winner.
GBTC's chart is starting to heat up. I really like the heavy volume retake of the 50-day moving average today. In addition, the monthly chart has been showing some constructive action over the last year, especially over the last three months. You never know where GBTC will head, but with a wider stop and a smaller position size, the reward can be worth the risk.
Full Disclosure: I currently own GBTC.
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