Bitcoin finally feels some love after several months of scorn. The daily chart comes down to that nasty 3250-ish low in December. Price is below the entire moving average ribbon so a mean reversion is needed. Bitcoin also violated the lower band at Thanksgiving so a move back to the middle band is in order and occurs the third week of December.
Bitcoin pops over +20% overnight and is now up +16% to 4793 (green dot; chart above is not yet updated). The break-out line of the green ascending triangle, a bullish pattern, is 4020-ish. Thus, 4020-3250=770. The upside target is 4790, call it 4800 (4020+770). Bingo. It's there, satisfying the ascending triangle. That was fast. The 150-day MA at 4845, and dropping, may offer up formidable resistance in this daily time frame.
The bitcoin weekly chart is agreeable to sideways to sideways up price action going forward. Interestingly, the bitcoin monthly chart continues to display a weak and bleak MACD line. Thus, bitcoin may chop sideways feeling some love and receiving renewed media attention, however, price will likely roll over again and take out the 3250 to the downside on the monthly basis.
Keystone's 80/20 Rule says 8's lead to 2's and 2's to 8's, so a failure at 3200 would open the door to 2800. Bitcoin may hold at 3150-3250 when the negative MACD line on the monthly chart exerts its influence say in May. For the current joy, with price above 4780, the 4820 level is likely in sight.
Considering the monthly chart, Keystone will likely not play in the cryptocurrency arena until May-July when a more substantive bottom should develop for bitcoin (when the MACD line on the monthly chart goes possie d) which will then start a trend higher that may last many months and even a year or more. So the idea would be to buy bitcoin at 2800-3250 in the May-July time period. Bitcoin may enjoy choppy buoyancy for a few weeks, in the near-term, especially If the media hype begins again for the digital darlings.
Keystone has played GBTC, RIOT and OSTK this year but was not in bitcoin or any of these derivative plays for the overnight pop. Rats. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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