Long Trade in GBTC (Bitcoin)
GBTC is an exchange traded fund that tracks the movement of Bitcoin. It trades like a stock, so GBTC can be bought in any traditional brokerage account or IRA.
You could also buy Bitcoin directly. Personally, I don’t trust a lot of the crypto brokers these days, so this feels like a safer option to me. But the results will be similar either way.
Bitcoin has been a top performer in 2023. The digital currency is up 146% since the start of the year.
What is attracting me to it now, however, is how well the price is holding up in weaker market conditions.
After the big run up in June, GBTC found support near 19.40 (white horizontal line I drew on the chart). Two weeks ago this level was breached, but look at how quickly it bounced back up?
This tennis ball action is what I want to see.
Volume is also mimicking price – another clue that often identifies stocks being accumulated by large institutions. Notice how volume rises with the stock and then decreases on the retracements.
This is textbook pre-breakout activity.
I took a 10% position in GBTC in my personal account this week at just under $20 per share. If it breaks below $18.30, I will likely get out. This represents an 8% risk on the trade.
You could also buy Bitcoin directly. Personally, I don’t trust a lot of the crypto brokers these days, so this feels like a safer option to me. But the results will be similar either way.
Bitcoin has been a top performer in 2023. The digital currency is up 146% since the start of the year.
What is attracting me to it now, however, is how well the price is holding up in weaker market conditions.
After the big run up in June, GBTC found support near 19.40 (white horizontal line I drew on the chart). Two weeks ago this level was breached, but look at how quickly it bounced back up?
This tennis ball action is what I want to see.
Volume is also mimicking price – another clue that often identifies stocks being accumulated by large institutions. Notice how volume rises with the stock and then decreases on the retracements.
This is textbook pre-breakout activity.
I took a 10% position in GBTC in my personal account this week at just under $20 per share. If it breaks below $18.30, I will likely get out. This represents an 8% risk on the trade.
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