ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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 … Read more
Price Failures The furious rally in Bitcoin (BTC/USD) from the March lows helped take my mind off the on-going downtrend in price. Since the last major peak in price at $13,880 on June 26, 2019, BTC/USD has made a series of lower highs and lower lows. The last peak in price was on May 7th … Read more
The Bitcoin Price Breakout Bitcoin (BTC/USD) wiped away my wariness about the price action with one clean breakout that finished a reversal of March’s steep losses. For about five days, Bitcoin was teasing its way toward a challenge of overhead resistance at its downtrending 200-day moving average (DMA). During the previous day, Bitcoin gained about … Read more
My first warning on Bitcoin (BTCUSD) came when Bitcoin failed to push through overhead resistance from October’s brief and failed run-up (see the horizontal line above) despite the bullish case being made at the time about the breakout. The most convincing warning came when the cryptocurrency sold off with the stock market in late February. … Read more
If there were ever a time for Bitcoin (BTCUSD) to soar, the Coronavirus-inspired sell-off in global financial markets should be that time. The cryptocurrency increased 6.7% this week, but that gain did not even finish reversing the last big down day on February 26th when the U.S. stock market dropped into oversold territory. BTCUSD is … Read more