Well that escalated quickly, then deflated just as fast. Bitcoin got rejected from all time high, but this market has only just begun to move! It's insane that we have gotten to these levels before the halving, but Wall Street is making all the difference. I caught a great scalp trade this morning where I got in a bit before the New York market open and closed the trade not too long after when the market pumped up and my take profit target got hit just under 69K.
This rejection has given the market a chance to cool off a bit so we can gain some momentum for the next run that will bust through the 69K-70K mark and will get us into price discovery. With institutional money coming in, the big boys are coming in and buying up what is already in short supply. So just wait till the mining rewards are cut in half. Believe me, you aren't ready!
Coming Supply Shock
Not only will the mining rewards, which is the amount of Bitcoin mined in each block, is cut in half for the next 4 years, but now we have some big money trying to buy up all the available Bitcoin on the markets through these ETFs.
With the inflows of money coming into the Bitcoin ETF, mainly Blackrock's IBIT and Fidelity's FBTC ETFs, we are just starting to see the first waves of money that will eventually start flowing. When we break the highs, the price discovery is going to get crazy volatile. So you will need a good risk management strategy when trading this market. But I promise you, you are not bullish enough, nor do you have enough! Keep stacking sats my friends... Not financial advice or anything, haha.
Logical Trading Indicator PRO Strikes Again!
I am back in the day trading world starting this week, so I got up early, got my day started and hit the charts about an hour before NY stock market open. I didn't get the best entry after I got the BUY signal and then the golden cross alert on the Logical Trading Indicator PRO, but that was because I got a bit hasty instead of waiting for at least one more candle for confirmation. But that's okay, because I saw how the market was building up to the open, and man, once the NY stock market was open, the price shot in my direction like a bullet! My take profit was hit before I knew it and I was pocketing some nice gains!
I knew that when we hit that resistance at 69K that we would most likely retrace because the market was overbought and needed some cooling off. So now I am waiting on another BUY signal from the indicator and I will start looking at my next moves to make some more money!
This would have been a great shorting opportunity, but that goes against my trading rules. I do not short in uptrends. And we are certainly in a big uptrend! So I am long only until the longer term trends change, which will be a while, so think of me as a big ole bull for some time!
Be safe out there trading in these volatile markets, because if you are not careful and you are too bullish, you could get eaten alive on moves like we have seen today where we hit 69K and at current price when this was written, 65K. That's some big swings, so you need to be able to tolerate and manage risk, especially if you are trading with leverage. It's all about trading logically!
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Additional Blog Locations
Many of my cryptocurrency related articles as well as trading articles can also be found on my crypto research site, Coin Logic.
I also post trading chart ideas on my TradingView Profile.
Disclaimer:
The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
