Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Don’t Miss The Bitcoin Rally

By Deron WagnerCryptocurrencyOct 04, 2022 06:53AM ET
www.investing.com/analysis/dont-miss-the-bitcoin-rally-200630635
Don’t Miss The Bitcoin Rally
By Deron Wagner   |  Oct 04, 2022 06:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
BTC/USD
+0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

After months of range-bound trading, Bitcoin is now setting up for a huge breakout above key resistance. Here’s how to profit from this hot crypto swing trade setup now…

After correcting 74% from last year’s high of 69,000, Bitcoin found a bottom in mid-June 2022.

Since then, the King of Crypto has been oscillating in a sideways range between 18,500 and 25,000.

However, the long-term weekly chart indicates that Bitcoin is now revving up for a massive upside breakout.

The weekly chart of BTC below shows why it may soon be time to jump back into Bitcoin:

BTC/USDT Chart
BTC/USDT Chart

Why Bitcoin is set up for a massive breakout now

  1. Accumulation volume – Above, notice that BTC just had its largest volume week in trading history. This is a sign of stealth institutional accumulation, which often occurs near key lows of support. Such volume spikes often precede large moves higher (after the “big boys” are done loading up).
  2. Triple bottom support – Firm support has been established around the 18,000-18,500 area over the past few months. Daily chart shows the formation of a triple bottom pattern.
  3. Relative strength – BTC has held in a sideways range, while the major stock indices have been making new lows. Bitcoin’s increasing relative strength to the stock market means that BTC may explode higher when stocks eventually start bouncing (which began on October 3).

Don’t jump the gun

As always, it’s important to wait for a proper entry trigger price before buying.

Specifically, Bitcoin must convincingly break out above its downtrend line on higher volume.

However, BTC is also still trading below its 50-day moving average—an important “line in the sand” indicator of intermediate-term trend.

As such, we also need to see BTC break out above its 50-day MA before entry.

The good news is the 50-day MA neatly converges with the downtrend line (around the 20,200 level).

The daily chart time frame below shows the proper buy trigger, as well as an ideal stop price to protect against a failed breakout:

BTC/USDT Chart
BTC/USDT Chart

As annotated on the first chart, our profit target area is resistance around the 29,000 level.

With a buy trigger above 20,200, that’s a profit target of more than +40%.

This swing trade setup carries a highly positive risk-reward ratio of 1:4, as we are risking (less than) 10% for a potential profit target of roughly 40%.

Flight to the new “safety” of Bitcoin?

Recently, news emerged that Credit Suisse bank (one of the largest investment banks in the world ) may be on the brink of collapse.

As with the bankruptcy of Lehman in 2008, such a black swan event could have massive implications to the entire financial system—especially since Credit Suisse is much larger than Lehman was.

A collapse of Credit Suisse could obviously have damaging, far-reaching effects to the traditional finance sector—but what about Bitcoin?

In theory, Bitcoin was created precisely to provide investors with an escape from over-leveraged financial systems.

As such, a collapse of Credit Suisse could theoretically be bullish for Bitcoin.

If Bitcoin decouples from financial markets while everything is crashing, it would be a key factor for globalization and mass adoption.

On the other hand, many market makers and institutions still view BTC as a “risk on” asset.

Accordingly, Bitcoin could just as easily break down below support if liquidity evaporates during a black swan event.

Either scenario could easily happen, but we won’t speculate which way Bitcoin will go if disaster unfolds with Credit Suisse (which may not even happen).

Since 2002, the mantra of our swing trading strategy has been trade what we see, not what we think.

Therefore, it really does not matter what we think about which way BTC would go.

Opportunity awaits

This Bitcoin swing trade setup is hot and you surely don’t want to miss it!

However, be sure to wait for a proper buy trigger price (above the downtrend line and 50-day MA).

As always, don’t forget your protective stop because anything can happen in the markets.

Original Post

Don’t Miss The Bitcoin Rally
 

Related Articles

Don’t Miss The Bitcoin Rally

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email