Bitcoin rose sharply yesterday to close above the $40k level. I was not expecting it to cross $40k yesterday itself and was expecting a bit more tussle or a retest of the downward trending line of the flag. The next levels that I am eyeing are the 200 DMA line and the white horizontal line that is almost coinciding with the 200 DMA. That level is $42500. I expect RSI to break above the downward trend and for Bitcoin to continue with positive momentum.
The start to this week has been strong after a strong-ish last week. Again, the level to watch is $42500 for the weekly close. Slow and steady engulfing of the 2 large weekly red candles would be my preference here, before a parabolic run-up to new ATHs.
Most altcoins posted outperformance versus Bitcoin during the last 24 hours.
The market was in full risk-on mode as "long high beta" was in play. Doge, XRP, and XLM were the only laggards in the top 20. Long altcoins when $42500 on BTC is broken and if possible, retested and confirmed.
My portfolio is largely Bitcoin and Ether. So I do want to look at both ETH and ETHBTC charts.
Expect ETH to break 50 DMA as Bitcoin cracks $42500. There is some nice consolidation happening in ETH. Kind of a similar story in the ETHBTC chart. 50 DMA is the level to break. The stark difference in both charts is that ETHUSD has a bear flag while ETHBTC has a bull flag. Whatever the market does over the next couple of days/weeks, ETH is the one to go long here.
There is more money coming to Bitcoin though. MicroStrategy is now planning an equity offering of $1bn for general corporate purposes, and to acquire BTC. link
Well, MicroStrategy is now a Bitcoin ETF, general corporate purposes would probably mean buying more ledger wallets. So maybe $5000 on that, and the remaining $999,999,995 will surely end up being used to purchase Bitcoin. Why doesn't MSTR start mining Bitcoin? Use green energy and mine Bitcoin. Then Elon will ensure that Teslas can be bought using BTC, and we may see new ATHs in a month or two. A win-win for everyone.