{"id":18633,"date":"2021-07-02T07:30:38","date_gmt":"2021-07-02T11:30:38","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18633"},"modified":"2021-07-02T07:30:38","modified_gmt":"2021-07-02T11:30:38","slug":"good-news-for-bitcoin-bulls","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/good-news-for-bitcoin-bulls\/","title":{"rendered":"Good News for Bitcoin Bulls"},"content":{"rendered":"<p>Bitcoin related stocks have been slowly grinding higher over the past few weeks.<\/p>\n<p>This action has shifted the charts of many of these stocks from <a href=\"https:\/\/www.jeffclarktrader.com\/glossary\/#bearish\">bearish<\/a> to <a href=\"https:\/\/www.jeffclarktrader.com\/glossary\/#bullish\" target=\"_blank\" rel=\"noopener noreferrer\">bullish<\/a>.<\/p>\n<p>And, that&rsquo;s good news for bitcoin bulls. Because, if the stocks do indeed discount the future price of bitcoin, then it looks like the King of Crypto could soon start to rally.<\/p>\n<p>The last time we floated this theory &ndash; that the price of the stocks led the price of bitcoin &ndash; was in <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/my-bet-on-bitcoin\/\" target=\"_blank\" rel=\"noopener noreferrer\">early May<\/a>. Back then, bitcoin was trading near $60,000.<\/p>\n<p>But, most of the bitcoin related stocks were falling hard. So, we figured bitcoin was likely headed lower as well.<\/p>\n<p>Today, the King of Crypto changes hands for about $32,000. It&rsquo;s down nearly 50% in just two months. Yet, a lot of the bitcoin stocks have been moving higher.<\/p>\n<p>Shares of Riot Blockchain (RIOT) &ndash; a bitcoin mining company &ndash; have rallied nearly 50% since early May.<\/p>\n<p>Take a look at the chart&hellip;<\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 0px;\" align=\"center\"><img decoding=\"async\" style=\"display: block; height: auto; max-width: 700px; width: 100%; margin: 0px auto;\" width=\"700\" alt=\"\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202107\/20210702-mm-01_jhg923.png\"><\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 20px;\" align=\"center\"><a href=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202107\/20210702-mm-01_jhg923.png\" target=\"_blank\" rel=\"noopener noreferrer\">(Click here to expand image)<\/a><\/p>\n<p>RIOT is now trading above all of its various moving average lines.<\/p>\n<p>And, those moving averages have shifted into a bullish formation &ndash; with the red 9-day <a href=\"https:\/\/www.jeffclarktrader.com\/glossary\/#ema\" target=\"_blank\" rel=\"noopener noreferrer\">exponential moving average<\/a> (EMA) above the green 20-day EMA, and the 20-day EMA above the blue 50-day <a href=\"https:\/\/www.jeffclarktrader.com\/glossary\/#movingaverage\" target=\"_blank\" rel=\"noopener noreferrer\">moving average<\/a> (MA). This setup often marks the start of an intermediate-term rally phase for a stock.<\/p>\n<table bgcolor=\"#eeeeee\" border=\"0\" cellpadding=\"10\" cellspacing=\"0\" width=\"100%\" style=\"border: 1px solid #D7D7D7; margin-bottom:20px;\">\n<tbody>\n<tr>\n<td style=\"padding-left: 15px;padding-right: 15px; padding-top: 10px; font-family: Arial,sans-serif;font-size:17px; line-height:24px;\">\n<p align=\"center\" style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px; font-size: 18px;\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The last time the chart of RIOT showed a similar setup was last October &ndash; just before an enormous move higher.<\/p>\n<p>This chart of MicroStrategy (MSTR) shows the same pattern&hellip;<\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 0px;\" align=\"center\"><img decoding=\"async\" style=\"display: block; height: auto; max-width: 700px; width: 100%; margin: 0px auto;\" width=\"700\" alt=\"\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202107\/20210702-mm-02_jhg234.png\"><\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 20px;\" align=\"center\"><a href=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202107\/20210702-mm-02_jhg234.png\" target=\"_blank\" rel=\"noopener noreferrer\">(Click here to expand image)<\/a><\/p>\n<p>MSTR is an enterprise software company that has famously (or infamously) raised money by issuing bonds, and then plowed all of that money into bitcoin.<\/p>\n<p>So, the stock trades as a proxy for the price of bitcoin. MSTR bottomed in mid-May near $450 per share. It closed yesterday at $650&#8230; That&rsquo;s a 45% gain in about six weeks.<\/p>\n<p>And, here&rsquo;s the chart of Tesla (TSLA) &ndash; the electric vehicle manufacturer that makes more money owning bitcoin than by selling cars&hellip;<\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 0px;\" align=\"center\"><img decoding=\"async\" style=\"display: block; height: auto; max-width: 700px; width: 100%; margin: 0px auto;\" width=\"700\" alt=\"\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202107\/20210702-mm-03_jhg824.png\"><\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 20px;\" align=\"center\"><a href=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202107\/20210702-mm-03_jhg824.png\" target=\"_blank\" rel=\"noopener noreferrer\">(Click here to expand image)<\/a><\/p>\n<p>Similar to RIOT and MSTR, shares of TSLA have enjoyed a nice rally over the past six weeks. And, the moving averages on the chart have shifted into a bullish configuration.<\/p>\n<p>This sort of bullish action in bitcoin stocks suggests that the price of bitcoin is more likely to be higher than lower over the next several weeks.<\/p>\n<p>It&rsquo;s not a guarantee, of course. But, the bearish action in the stocks two months ago warned us of the potential for a steep decline in bitcoin&hellip; and that&rsquo;s what we got.<\/p>\n<p>Now the bitcoin stocks are suggesting the King of Crypto is setting up for a rally.<\/p>\n<p>Best regards and good trading,<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\" width=\"200\" style=\"max-width:200px; width:100%;\" \/><\/p>\n<p>Jeff Clark<\/p>\n<p><strong>P.S. <\/strong>Every week, my colleague Eoin Treacy shares his thoughts on what&rsquo;s going on in the market.<\/p>\n<p><a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/what-a-difference-a-week-makes\/#eoin\" target=\"_blank\" rel=\"noopener noreferrer\">Last week<\/a>, he discussed the new infrastructure bill, the action in Tesla, and supply chain improvements in the semiconductor sector. Today, he&rsquo;s sharing more of his insights&hellip; just click below to hear what Eoin has on his mind this week.<\/p>\n<p><a name=\"eoin\"><\/a><br \/>\n<!-- EOIN BEGIN --><\/p>\n<h2 style=\"text-align:center\">Eoin&#8217;s Insights<\/h2>\n<p>Happy Friday <em>Market Minute<\/em> readers. As usual, I have another installment of my weekly video series where I give my thoughts on what I currently see happening in the markets.<\/p>\n<p>Today, I\u2019ll be going over the activity in bitcoin, inflationary pressures, and the next move for copper. Just click below to watch.<\/p>\n<div style=\"position: relative; display: block; max-width: 100%;\">\n<div style=\"padding-top: 56.25%;\"><iframe src=\"https:\/\/players.brightcove.net\/5102072647001\/BJxYHdft0_default\/index.html?videoId=6261937185001\" allowfullscreen=\"\" allow=\"encrypted-media\" style=\"position: absolute; top: 0px; right: 0px; bottom: 0px; left: 0px; width: 100%; height: 100%;\"><\/iframe><\/div>\n<\/div>\n<p><!-- EOIN END --><\/p>\n<h2 align=\"center\"><strong>Reader Mailbag<\/strong><\/h2>\n<p>In today&rsquo;s mailbag, <em>Jeff Clark Trader<\/em> member Joseph <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/the-tourism-revival\/\" target=\"_blank\" rel=\"noopener noreferrer\">answers Eoin&rsquo;s question<\/a> from Wednesday&rsquo;s essay on whether the pandemic is over enough for the tourism industry to skyrocket&hellip;<\/p>\n<blockquote style=\"border-left: 4px solid #ccc; margin: 0px 30px 0px 10px;padding-left: 15px;\">\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px;\">Hi, in response to your question on traveling for that ETF recommendation. I wouldn&rsquo;t even consider traveling outside the U.S. right now, because there&rsquo;s really no accurate information on COVID. <\/p>\n<p>Look at Canada to the north, it&rsquo;s still shut down and so are many other countries. I wouldn&#8217;t travel outside the U.S. for at least another year. Thank you.<\/p>\n<p align=\"right\" style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px;\"><strong>&ndash; Joseph<\/strong><\/p>\n<\/blockquote>\n<p>Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming \u2013 and send us any questions \u2013 at <a href=\"mailto:feedback@jeffclarktrader.com\"target=\"_blank\">feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There\u2019s a pattern happening&#8230;<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-18633","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=18633"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18633\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=18633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=18633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=18633"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=18633"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=18633"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=18633"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=18633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}