Trade Recommendation: Bitcoin
Our February 9, 2019 trade recommendation for Bitcoin hit its target. Today, April 2, the market climbed as high as $5,106.90. Those who followed the trade recommendation grew their investments by as much as 37% in less than two months.
Now, we’ve been bullish on Bitcoin ever since December 2018. That stance will not change anytime soon, especially after today’s price action. Nevertheless, Bitcoin must pull back to keep its ascent sustainable. If you have yet to join the bullish bandwagon, this might be your chance to hop on before extreme volatility kicks in.
Technical analysis shows that BTC/USD has finally taken out resistance of $4,400 in Bitfinex. This triggered the breakout from the ascending triangle pattern on the daily chart. The breakout ignited a strong rally to $5,106.90.
While this price action is bullish, technical indicators are flashing overheated signals. For instance, the daily RSI is in extreme overbought territory. In addition, the daily candle has a wick on top of its body. This is an indication that those who bought the bottom are now taking profits.
The strategy is to buy on dips as close to $4,400 support as possible. As long as Bitcoin holds this area, bulls will likely ignite a rally to our target of $5,800.
The process may take more than a month.
Daily Chart of Bitcoin/US Dollar on Bitfinex
As of this writing, the Bitcoin/US Dollar pair is trading at $4,869.10 on Bitfinex.
Summary of Strategy
Buy: On dips as close to $4,400 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.