{"id":19588,"date":"2022-04-06T07:30:13","date_gmt":"2022-04-06T11:30:13","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19588"},"modified":"2022-04-06T07:30:13","modified_gmt":"2022-04-06T11:30:13","slug":"this-is-a-key-move-for-a-bitcoin-bull-run","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-is-a-key-move-for-a-bitcoin-bull-run\/","title":{"rendered":"This Is a Key Move for a Bitcoin Bull Run"},"content":{"rendered":"

Bitcoin topped out in late 2021, along with the rest of the broader equity markets.<\/p>\n

But unlike the S&P 500 and the Nasdaq – which have declined 14.6% and 22.3%, respectively, bitcoin has had a larger pullback of 52%.<\/p>\n

Volatile swings in the cryptocurrency market are nothing unusual.<\/p>\n

For example, bitcoin made a high in December 2017 at $19,891. A year later, the cryptocurrency was trading at $3,128… that’s an 84% selloff!<\/p>\n

And since then, bitcoin has rallied an astonishing 2,105%.<\/p>\n

For bitcoin investors, it truly does seem that there can’t be gains without some pains…<\/p>\n

One key to successfully investing in cryptocurrency is understanding where the market is currently trading in the broader cycle.<\/p>\n

My analysis tells me that the current bearish<\/a> cycle may have already bottomed out and we’re now preparing for a run to new all-time highs.<\/p>\n

Of course, timing market bottoms can be tricky to get right. That’s why I want the market to prove to me that it’s getting ready to change course.<\/p>\n

Fortunately, now I’m seeing the initial signs that bitcoin is starting to do just that.<\/p>\n

So first, let me walk you through a daily price chart of bitcoin shown below…<\/p>\n

\"Chart\"<\/div>\n

There are two important things going on with this price chart…<\/p>\n

    \n
  1. \n

    $44,538 is a resistance<\/a> level that’s managed to put a lid on any rallies in bitcoin since the beginning of the year (horizontal red line).<\/p>\n

    The market has tried to test this level several times without being able to successfully break through.<\/p>\n

    But that changed last week, when crypto bulls<\/a> were finally able to take prices through this key level.<\/p>\n

    It’s important to remember this age-old concept of technical analysis<\/a>: broken support<\/a> will serve as future resistance, and broken resistance will serve as future support.<\/p>\n

    That’s what’s going on with bitcoin now. I expect prices to pull back in the short term to test the broken resistance level of $44,538. Then, we’ll see if it’ll hold as a supportive floor for prices.<\/p>\n

    If bitcoin can stay above this level, then it makes sense to maintain a bullish stance in this market.<\/p>\n<\/li>\n

  2. \n

    The second feature of this price chart is how bitcoin has currently managed to trade above its 20- and 50-period moving averages for several days in a row (blue and red squiggly lines).<\/p>\n<\/li>\n<\/ol>\n

    On the left side of the chart, notice that once the selloff in bitcoin really picked up steam prices remained firmly below both of these moving averages.<\/p>\n

    I’d expect that behavior from a market once a strong trend is underway. The fact that bitcoin is now able to trade above those same moving averages is encouraging news for the cryptocurrency market.<\/p>\n\n\n\n
    \n

    Free Trading Resources<\/strong><\/p>\n

    Have you checked out Jeff’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 click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    These two pieces of technical evidence tell me that bitcoin may have already bottomed out… and the next bull run is already underway.<\/p>\n

    Next, we need to see if the market can hold that key level of $44,538.<\/p>\n

    That’ll be the first line of defense that bulls will be looking towards. The second is whether bitcoin can keep its head above the 20- and 50-period moving averages.<\/p>\n

    Right now, bitcoin is interesting because prices are still trading around 30% off its all-time high of $69,000.<\/p>\n

    That means there’s exciting potential upside ahead.<\/p>\n

    Happy Trading,<\/p>\n

    Imre Gams
    Analyst, Market Minute<\/em><\/p>\n

    <\/p>\n

    Reader Mailbag<\/h2>\n

    What are your thoughts on cryptocurrencies? Do you think bitcoin will keep heading higher long term?<\/p>\n

    Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Remember this age-old concept…<\/p>\n","protected":false},"author":49,"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-19588","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\/19588","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\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19588"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19588\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19588"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19588"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19588"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19588"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}