Bitcoin range grinds on setting the stage for a bigger breakout

Feb 7

We're showing a weekly chart in today's update.

Back on December 27th I published a trade update regarding Bitcoin just as it was entering its sideways consolidation, the same one we're looking at in today's chart.

I certainly didn't expect the range to develop for so long, but here we are 10 weeks later looking at more-or-less the same key levels: 45K on the upside and 40K on the downside for approximately a 12% low to high range.

Given all that has happened in the last 10 weeks with the ETF approvals and GBTC outflows its sort of amazing we're holding so tight. Then again, we did have two failed breakout attempts that have caused both buyers and sellers to chase at precisely the wrong time.

A convincing close over 45K remains key in my eyes for the bull case to pick up momentum and that should set up a powerful continuation pattern back towards the former all-time highs as we creep closer to halving.

I would be reducing exposure and managing risk if the opposite breakdown occurs on a move back below 40K

(disclosure: long)