Trade Recommendation: Bitcoin
Our April 2, 2019 trade recommendation for Bitcoin (BTC/USD) hits its target. On May 3, 2019, the market climbed as high as $6,150 on Bitfinex. Those who followed the trade recommendation grew their investments by as much as 28% in about a month.
Our calls on Bitcoin since December 2018 have been on the money. The market has gone through months of accumulation from December 2018 to April 2019. This is the reason why we continue to be bullish on the market. Those who accumulated at the bottom are definitely protecting their investments.
We’ll see how determined they are in the next pullback.
Technical analysis shows that BTC/USD is enroute to support of $4,930. This view comes as the market is showing signals of short-term exhaustion. There are bearish divergences on the daily volume and RSI. These indicators tell us that the current ascent is weakening.
Now, as long as Bitcoin is above $4,930, its sentiment is bullish. Thus, we expect the market to consolidate between $4,930 and $5,800 for the next few weeks before the next leg up. This gives Bitcoin the chance to cool down. Once technical indicators are no longer overheated, the market is likely to rally to as high as $6,600.
The strategy is to buy on dips as close to $4,930 support as possible. As long as Bitcoin holds this area, bulls will likely ignite a rally to our targets of $5,800 and $6,600.
The process may take more than a month.
Daily Chart of Bitcoin/US Dollar on Coinbase
As of this writing, the Bitcoin/US Dollar pair is trading at $5,623.60 on Coinbase.
Summary of Strategy
Buy: On dips as close to $4,930 as possible.
Targets: $5,800 and $6,600.
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.