{"id":21426,"date":"2023-12-11T07:30:38","date_gmt":"2023-12-11T12:30:38","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21426"},"modified":"2023-12-11T07:30:38","modified_gmt":"2023-12-11T12:30:38","slug":"whats-next-for-bitcoin","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/whats-next-for-bitcoin\/","title":{"rendered":"What\u2019s Next for Bitcoin"},"content":{"rendered":"

Bitcoin’s been on a tear lately.<\/p>\n

The king of cryptocurrencies has recently broken above $40,000. That’s a major milestone.<\/p>\n

The last time bitcoin traded at $40,000 was in May 2022. Everyone wants to know what’s going to happen next.<\/p>\n

I’m not going to mince my words. Bitcoin is going to break to new all-time highs. According to my technical analysis, it’s because of a recent development in bitcoin’s price chart.<\/p>\n

On November 6, Market Minute<\/em> readers were shown a version of this chart<\/a>:<\/p>\n

\"Image\"<\/p>\n

There are two important things going on here.<\/p>\n

First, bitcoin was able to trade above three key moving averages by mid-October.<\/p>\n

Bitcoin’s Trend Is Up<\/h2>\n

Breaking above the 20-, 50-, and 200-period moving averages tells us that bitcoin’s short, intermediate, and long-term trend is up.<\/p>\n

But to really get some momentum going, bitcoin had to clear its trend channel (the blue parallel lines).<\/p>\n

Breaking out of that trend channel allows bitcoin to achieve what I call “escape velocity.” In other words, to get some real momentum going<\/em>.<\/p>\n

And that’s exactly what happened next. Check out this updated price chart of bitcoin below:<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

As you can see, we’ve clearly broken out of that channel. And once we did, prices accelerated sharply higher.<\/p>\n

But it’s not all clear skies ahead. While bitcoin will eventually break to new all-time highs, there will be a few speedbumps along the way.<\/p>\n

Notice how far away bitcoin is from those three key moving averages. That’s a sign that momentum has reached a bullish extreme.<\/p>\n

A market’s price movements are a lot like an elastic band. You can only stretch an elastic band so far before it has to snap back.<\/p>\n

Given that bitcoin has shot up nearly 60% since the start of October, the odds are high the band is near its breaking point.<\/p>\n

We likely need to see prices “snap back” before bitcoin can run higher. In trader speak, this is known as “reversion to the mean.”<\/p>\n

A likely “snap back” target would be the top of the broken trend channel. This target happens to coincide with the daily timeframe’s 20-period moving average (the short-term trend indicator).<\/p>\n

<\/p>\n

\n
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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<\/p><\/div>\n<\/div>\n

<\/p>\n

What This Means for You<\/h2>\n

That means a possible pullback to around $38,000 or so.<\/p>\n

How you use this information depends on the kind of trader or investor you are.<\/p>\n

If you’re in bitcoin for the long haul, then such a pullback won’t faze you. You might even want to use it as an opportunity to buy the dip.<\/p>\n

But a shorter-term trader might want to consider taking profits here and reloading once the pullback is finished.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

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

Bitcoin\u2019s been on a tear lately.<\/p>\n","protected":false},"author":55,"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-21426","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\/21426","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\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21426"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21426\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21426"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21426"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21426"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21426"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}