Two weeks ago, I examined the sharp pullback in Bitcoin (BTC/USD) and concluded that the cryptocurrency was taking a refreshing pause ahead of the next breakout. The breakout is here.
This breakout is a double bonus as it represents a bullish (upside) resolution to a Bollinger Band (BB) squeeze. Such breakouts are tradeable with well-defined entry and stop points (above and below the squeeze). Each breakout gives me more confidence that I can maintain my current and growing position in Bitcoin for longer. Per the latest trading strategy, I will buy the next pullback during this breakout.
As a reminder, breakouts confirm the buying power in the market. Rebounds from pullbacks further solidify the momentum.
Ahead of this breakout, the Google Trend Momentum Check (GTMC) was still cooling down. Per the GTMC, the spike in Google search trends for “bitcoin” signaled a likely reversal of the pullback. The pullback was short-lived. Now I monitor these data for the next spike in searches.
Be careful out there!
Full disclosure: long BTC/USD