If you watch CryptoTwitter for the hedge fund community, most of the talk is about how the 50-day moving average (red) is close to crossing the 200-day moving average (black). In equities, they call this the Golden Cross (Figure 1). This event is seen as bullish because it has not happened in quite some time.
While we continue to be very bullish on Bitcoin (BTC), we are careful not to engage in “groupthink” and say the same thing as everybody else.
The most important moving average to look at may be the 50-week exponential moving average on the Bitcoin (BTC) weekly chart (Figure 2). On that chart, $5,326 is the most important level.
If CME futures expiration goes well at the end of the week and Bitcoin (BTC) holds above this level on a weekly closing basis, the stage is set for a more dramatic rise higher.
Bottom Line: We’ve been bullish Bitcoin (BTC) because we believe institutional investors have to pile in one at a time. If you’ve missed the rally, we think it’s better to look to see if Bitcoin (BTC) can close above $5,326 on Sunday before being confident that buying strength is a good idea vs. waiting for a dip.
The Crypto.IQ Trading Desk is offering people a chance to take advantage of what may be a historic move in Bitcoin (BTC).
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