Bitcoin recaptures major bullish trend line! Close all shorts!
Updated
Disclaimer: previously I was short, but as new market information presents itself, it must be followed.
Bitcoin just made a major bullish move which is the recapture of it's original October bullish trendline which had broken in the Grayscale sell off. This is majorly bullish.
Additionally, we spent several days testing and confirming the major Fibonacci level at 42641.
Taken together this strongly opens the pathway to 54211 which is the next major level higher. If it gets there by March 6, that would also represent a confluence with a major channel resistance.
So 54211 is the new target.
Good luck and happy trading.
Bitcoin just made a major bullish move which is the recapture of it's original October bullish trendline which had broken in the Grayscale sell off. This is majorly bullish.
Additionally, we spent several days testing and confirming the major Fibonacci level at 42641.
Taken together this strongly opens the pathway to 54211 which is the next major level higher. If it gets there by March 6, that would also represent a confluence with a major channel resistance.
So 54211 is the new target.
Good luck and happy trading.
Note
Comment:Also please note, options are extremely cheap right now.
You could do either one of the following strategies:
1) Take a leveraged long and buy March 1 44000 puts for $1000 per contract (can be purchased in 0.1 contract size also on Deribit). Your risk is limited then to $1500 (difference between current price and strike price) plus $1000 (option cost).
If you leveraged 2 to 1. This represents a total risk of $5000 (10%) of your portfolio. With a target of 54200 the upside would be $20,000 ($10000 x 2 contracts) - $2000 for the 2 puts = $18.000. That represents a gain of 40%! That puts risk/reward at better than 1:4.
2) Buy March 1 48000 calls for $1000. If it makes it to 53000 by March 1, you have a gain of $5000 for each contract minus the cost of the $1000 option for each contract. This also represents a 1:4 risk reward but at a much lower total risk. Total risk is the cost of the option.
Note
Stay vigilant. If we fail to hold this trend line or break back below it before the end of the week, that's really bad news!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.