Bitcoin Is About To Breakout

A couple of weeks ago, I wrote about buying silver and recommended some silver-related stocks and ETFs. We started trading silver when AGQ was under $30. It has since more than doubled and closed recently near $70; it ended last week above $65, with a minor pullback on Friday!

Even though the stock market keeps on pushing higher, baffling most economists. Due to the COVID-19 pandemic, the world economy has slowed and job losses are mounting. Still, money keeps on pouring into the stock market, led by tech stocks. Technically speaking, market charts still look strong, although, for many, most stocks are becoming expensive to chase. The risk and reward ratio has become high, especially when we are starting to see sharp pullbacks, for instance, TSLA, TDOC, FSLY, DDOG, and OKTA.

If stocks are becoming risky, money must be shifting to other investment vehicles. Precious metals are a given. Also, it looks like digital currency are warming up again! We've heard earnings reports from online shopping companies (AMZN, W, SHOP, OSTK) and also online transaction platforms (SQ, PYPL), which are all seeing a boost. With major central banks printing money, people are investing AND using digital currencies more and more. The most popular of which is still bitcoin.

Let's take a look at GBTC, which is a bitcoin ETF:

This is a weekly chart of GBTC. We can see that it is about to break out! It created a bottom in April 2019 and has been trading in a tight range since October 2019. It is now ready to go higher. It's got some minor resistances above $13. But, the big one is still some distance away at somewhere between $20-$22, where there is a gap. I think within a few months, GBTC will test that $20-$22 range. This could be a good hedge against the market.

Good morning and HappyTrading!™

Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no ...

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Richard J. Schwartzman 2 months ago Member's comment

Glad I listened to you!

Andy Wang 2 months ago Author's comment

more to come... seeing profit-taking on techs, as I mentioned in the article. market technicals are still strong overall. But, one big shocking event, whatever that maybe, can change everything. keep lots of cash. Play more defensively and keep a well-balanced portfolio so that you can make money on both up and the down markets. Things are going to get slushed around for a bit, until it rolls over the cliff. Wait until mid-week next week, perhaps the last week of August.