Just yesterday, Bitcoin hit a new high again, breaking above the $5000 barrier, and bringing double digit gains to all those vested.
While there has been much speculation on this fundamentals of this cryptocurrency, it was actually a pretty familiar pattern for those used to reading the charts. I will explain more in the chart below, and show why there is going to be a good buying opportunity really soon.
If you look at this chart of Bitcoin, you will see that the majority of the price bars are green in colour, meaning the buyers have always been in control of this counter.
In addition, the counter has been moving up in a series of higher highs and higher lows, which is a classic sign up an uptrend.
Which means that all you need to do is to enter on dips in the price, as explained in my previous article.
The next question of course is how far can it go, and for this we can use the breakout projection technique, which would give a projection of about $6500.
But here is the exciting part: In such a breakout, especially at a key number, there is a very good chance (not 100%, but high), that the price will pull back to test the $5000 region again.
Yes, you heard right. If you had missed the previous move, hopefully there is another chance. I will be waiting to add on to my positions.
If it goes from $5000 to $6500, that is a gain of 30%, which is way better returns than buying any stock or REIT. And it could happen in weeks/months.
I will continue to monitor this counter. In the meantime, trade safe, and win big! 😀