The Real Reason Bitcoin Is Rallying to $7200...
Bitcoin got a major push last night to the upper limit of our rising wedge.We were expecting a pull back, but insofar Bitcoin has continued to rally without coming back down to give us a good entry.
Unless it has a good set-up with a high R/R (risk/reward), I don't like to enter. Many of the altcoins have been presenting us with great R/R's, which we have taken a lot of them in our VIP group.
Right now, what we are seeing is a pushing contest between the bears and the bulls.
I believe a target of $7200 is a solid target on this Bitcoin price rally because there was something known as a "gap down" in the futures market (which you can see on the graph attached.)
Typically with gaps, there is a pull back before resuming the trend. (which for Bitcoin is currently bearish)
This is known as a Gap Pull Back trade.
For Bitcoin, the Stoch RSI is maxed on the daily, so we should get a nice pull back for re-entry around $6700-$6800 if Bitcoin doesn't break down from there.
If we don't get the pull back, the R/R (risk/reward) is not in our favor as a pull back is overdue based on the stoch.
Target for the second gap on the futures market is around $7200-$7300.
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