{"id":19645,"date":"2022-04-21T07:30:43","date_gmt":"2022-04-21T11:30:43","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19645"},"modified":"2022-04-21T07:30:43","modified_gmt":"2022-04-21T11:30:43","slug":"the-king-of-crypto-is-ready-to-run","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-king-of-crypto-is-ready-to-run\/","title":{"rendered":"The \u201cKing of Crypto\u201d Is Ready to Run"},"content":{"rendered":"

The “King of Cryptocurrencies” is set up for a rally.<\/p>\n

Bitcoin has been falling hard for the past three weeks. But lately it’s been showing some strength.<\/p>\n

And that strength has created a potentially bullish<\/a> setup on the daily chart…<\/p>\n

Take a look at this bitcoin to U.S. dollar chart…<\/p>\n

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

The chart shows an “ascending triangle” pattern (dotted red lines). It’s a bullish pattern that can often lead to an explosive move higher.<\/p>\n

Bitcoin broke out to the upside of the pattern last month. But it was a false move (a fake out), and the “King” quickly fell back inside the pattern.<\/p>\n

Last week, bitcoin tested the support<\/a> line of the ascending triangle. Support held, and bitcoin bounced. Now, it looks like bitcoin is in a better position to stage a breakout.<\/p>\n

The support and resistance<\/a> lines of the triangle are now closer together, which increases the likelihood of a sustained breakout.<\/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

All the various moving averages are coiled together near the $42,000 level. Energy is building… And bitcoin is currently trading inside the cluster of its moving averages.<\/p>\n

If bitcoin can rally above its 50-day moving average<\/a> (MA – blue line) at $42,136, then it’s likely headed toward the resistance line of the triangle near $45,000. And if bitcoin can rally above resistance, then the pattern suggests a rally back up to the December high near $51,000.<\/p>\n

Of course, nothing is guaranteed here. Bitcoin could break down from the pattern by dropping below the support line at $39,000. In that case, the “King of Cryptos” will likely be headed toward $35,000.<\/p>\n

But I like the idea of owning bitcoin here. Traders can buy it near $42,000 and keep a stop at $39,000 – risking $3,000 per coin.<\/p>\n

On the other hand, if bitcoin breaks out to the upside it could run to $51,000. That would be a $9,000 gain. From a risk\/reward perspective, we’re risking $3 to make $9.<\/p>\n

That seems like a good setup in my book.<\/p>\n

Best regards and good trading,<\/p>\n\n\n
\"signature\"<\/td>\n<\/tr>\n<\/table>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

In today\u2019s mailbag, Delta Report<\/em> member Thiago shares his thoughts on Jeff\u2019s recent Open Line Q&A session [subscribers can access that here]<\/a>…<\/p>\n

\n

I’m a new trader with no experience. I watched the Q&A, and it helped me understand how options work more clearly. I really enjoy Jeff\u2019s Delta Report<\/em>. You\u2019re an excellent professor!<\/p>\n

– Thiago T.<\/strong><\/p>\n<\/blockquote>\n

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

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

There\u2019s some strength here…<\/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-19645","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19645","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=19645"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19645\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19645"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19645"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19645"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19645"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}