Now, though, bitcoin is quickly approaching our upside target and we’re starting to see signs that the rally may be ending.<\/p>\n
Here’s an updated look at the NYSE Bitcoin Index – which tracks the action in bitcoin…<\/p>\n
![\"\"](\"https:\/\/jc-stable.s3.amazonaws.com\/ee-assets\/channels\/articles\/mm\/201905-mm\/20190508-MM-01.png\")
<\/p>\n
Bitcoin has rallied all the way back up to where it was trading last November – just before diving off of a cliff. This is a natural resistance area, and it would be normal for the bitcoin rally to pause right here, and maybe even pull back a bit.<\/p>\n
Notice also how there is negative divergence on the technical indicators at the bottom of the chart. Negative divergence occurs when a chart makes higher highs, but the technical indicators don’t keep up. They make lower highs.<\/p>\n
This is often an early indication that the momentum behind a rally is slowing. Bitcoin has been moving higher. But, it’s not moving higher with as much enthusiasm as before. This usually occurs at the tail end of a rally, and often just before a pullback.<\/p>\n
So, with bitcoin now trading at its highest level in six months, with the price bumping into resistance, and with negative divergence developing on several technical indicators, it seems like a pretty good time to lock in some profits.<\/p>\n
If you bought bitcoin earlier this year, when we first pointed out the potential for a rally, congratulations. You have a solid gain in just a few short months.<\/p>\n
Now, though, it’s time for a pause.<\/p>\n
Best regards and good trading,<\/p>\n
![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\n
Jeff Clark<\/p>\n
P.S. <\/strong>Before you go, one last thing…<\/p>\n Last week, you may remember me telling you to keep an eye on your inbox for an announcement. It’s a big project my team and I have been working on. Well, it’s just about time for me to reveal the details…<\/p>\n Tomorrow morning, at our normal time, you’ll receive a special Market Minute <\/em>send from me. In it, I will reveal something I hope will encourage more of you to become option traders.<\/p>\n It’s something I’ve been working on for a while now. In short, it’s a way for anyone to get started trading options. It’s so simple, and profitable, I firmly believe it can help you land an early, comfortable retirement.<\/p>\n So, keep an eye on your inbox tomorrow morning, at 7:30 a.m. ET, for all the details.<\/p>\n In today’s mailbag, one subscriber thanks Jeff for his service…<\/p>\n You made me a better trader and for that, I want to say thanks! I’m still learning… But when all heck breaks out in the market, I’m looking good and that is my peace! Keep sending your thoughts…<\/p>\n – Jeffrey<\/strong><\/p>\n<\/blockquote>\n And another Mastermind subscriber talks about taking emotions out of trading…<\/p>\n I paid attention during the Mastermind course, every time you talked about emotions and trading, and wondered if I’m cut out for this. I try to take my emotions out of it, knowing it’s a rookie trait to be emotionally exhausted from trading. But, I still persist. I think I like selling options instead of buying them. I lose less money that way, and I don’t have to pay constant attention to the market, like I do when I’m buying options.<\/p>\n I still devour every word out of your mouth, trying to get better. But I still need remediation… Thank you for your words of wisdom.<\/p>\nReader Mailbag<\/strong><\/h2>\n
\n
\n