✍️Weekly Trade Plan & Recap 25th - 31st May
Our Bitcoin 110K target nailed! Plus, where is it heading to next? We'll also look at regular analysis for the Dollar Index, Euro, Gold, Silver, Copper, S&P 500 and Crypto Alts.
It doesn’t seem like just a month ago that Bitcoin was trading at 77k!
That’s when I published this call to Substack members (on April 7th to be exact) to buy Bitcoin at 77,700.
As always with trading, timing is everything. We knew Bitcoin was coming into a major level and were waiting for price action to finish it’s down move before we would buy.
Notice on the daily chart, the Bear Channel (in purple) that sent price down to our important red level at 74k. As soon as it spiked that low and rejected, that was a decent signal to buy.
In two decades of trading these markets, one of the best pieces of advice I can give is a trade is only worth taking if there is a higher timeframe reason behind it.
So let’s take look at the monthly chart below…
Our higher timeframe reason for the trade was the red support level at 74k, formed from the March 2024 swing high. The 38.2% Fib retracement from the October 2022 low to the all-time high also gave this level additional confluence.
Notice that this chart is very bullish. A Bull Channel (in purple) formed with it’s low touching the lower bound of the wide channel at the 50k level. It’s no surprise the market pumped aggressively out of this channel, reaching a high of 109k.
Another important point I want you to notice…
After the pump to 109k, the market retraced at the 1.618 Fib extension. I had warned members in the Substack group to keep an eye on this level as it could send the market back down and indeed it did!
The important takeaway here is the market has proven that the Fibonacci swing from the November 2021 high at 69k to the November 2022 low at 15,460 is important to traders (and algos) watching it.
Given that Bitcoin is a very technical market, this leads us to believe our next target will be the 2.618 Fib extension at 155k.
I hope you enjoyed this free excerpt from the newsletter.
Members are given trades and analysis in advance, giving an advantage over the Twitter crowd.
Next up for members, we’ll look at an in-depth analysis of the Dollar Index, EUR/USD, Gold, Silver, Copper, S&P 500 and Crypto Alts.