{"id":20630,"date":"2023-02-23T07:30:28","date_gmt":"2023-02-23T12:30:28","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20630"},"modified":"2023-02-23T07:30:28","modified_gmt":"2023-02-23T12:30:28","slug":"nows-a-good-opportunity-to-take-profits-on-bitcoin","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/nows-a-good-opportunity-to-take-profits-on-bitcoin\/","title":{"rendered":"Now\u2019s a Good Opportunity to Take Profits on Bitcoin"},"content":{"rendered":"

On January 12, I wrote about a bullish opportunity in bitcoin<\/a>.<\/p>\n

At the time, bitcoin was trading just above $17,000.<\/p>\n

I identified a falling wedge which I believed would break out to the upside, leading bitcoin to a price of at least $24,310.<\/p>\n

And that’s exactly what happened…<\/p>\n

Bitcoin went on to rally over 40% since I spotted this setup.<\/p>\n

Now that this bellwether cryptocurrency has hit my target, it’s time for another update…<\/p>\n

Now’s the Time to Take Profits<\/h2>\n

I’m approaching bitcoin as a trader, not as a crypto “hodler” (holding on for dear life).<\/p>\n

And I believe now is as good a time as any to take some profits on this trade.<\/p>\n

That’s because there’s are signs that bitcoin’s bullish thrust out of its falling wedge is weakening.<\/p>\n

Let’s take a look at bitcoin’s chart…<\/p>\n

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

As you can see, bitcoin broke out of the upper trendline of the falling wedge pattern (blue lines).<\/p>\n

Falling wedges are powerful reversal patterns. Once price breaks out of the wedge, it tends to travel swiftly to its target.<\/p>\n

In this case, the target I had identified was the 200-day moving average (MA – green line).<\/p>\n

On January 12, I wrote that if bitcoin could strongly break above the 200-day MA, then that would open the door to even higher prices.<\/p>\n

Bitcoin did, in fact, break above the 200-day MA. But the strength of this rally is quickly fading.<\/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

Now, the Relative Strength Index (RSI) is showing a phenomenon known as bearish divergence<\/em>.<\/p>\n

As a market nears a significant top or bottom, the RSI will often start diverging from the market’s price action.<\/p>\n

On January 17, the RSI peaked and started to trend lower, while the price of bitcoin continued to climb higher.<\/p>\n

Divergence is typically a leading indicator. It’s a signal to watch out and be careful because prices will eventually follow the momentum indicator.<\/p>\n

The combination of bearish divergence as price was hitting its 200-day MA is a warning to bitcoin bulls.<\/p>\n

Now is the time to consider taking some profits off the table on this trade.<\/p>\n

At the very least, I would consider setting a trailing stop loss at the recent lows of February 13 at $21,380.<\/p>\n

Happy trading,<\/p>\n

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

<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

In today’s mailbag, Currency Trader<\/em><\/a> members thank Imre for his latest video tutorial…<\/p>\n

\n

Hi Imre, I just want to say thanks for your training video and for being loyal to your commitment.<\/p>\n

I’m looking forward to this new investment endeavor and trust that you’ll take us in the right direction. Keep sending some more videos, I find them very helpful.<\/p>\n

– Ron B.<\/strong><\/p>\n<\/blockquote>\n

\n

Hi Imre! Thank you for your latest tutorial on TradingView, position size, and partial profits. That explains everything very clearly.<\/p>\n

– Debra A.<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n

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

Now is the time to consider taking some profits off the table on this trade\u2026<\/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":[76],"newsletter-type":[],"ticker":[],"class_list":["post-20630","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20630","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=20630"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20630\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20630"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20630"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20630"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20630"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}