If you’re not a big fan of trading cryptocurrencies, like Bitcoin, that’s understandable.
Many traders – including myself – don’t trade it directly.
But that doesn’t mean we should miss out on the rally.
Instead of trading Bitcoin or other cryptos directly, we can trade mining stocks, like Marathon Digital, Riot Platforms, the ProShares Bitcoin Strategy ETF, and even MicroStrategy, which now holds about 214,400 Bitcoin.
One of the best ways to know whether to go long or short Bitcoin, or any of those mentioned Bitcoin-related stocks is by paying close attention to technical pivot points. For example, by paying attention to the Bitcoin Bollinger Bands, relative strength, Full Stochastics, and Williams’ %R, it’s easy to spot where to buy and when to go short.
Granted, it’s not a perfect system. That doesn’t exist. But it will help point you in the right direction, based on momentum.
Here’s a two-year chart of Bitcoin, for example.
Look at what happens when RSI pushed to or below its 30-line. Bitcoin starts to bottom out.
To strengthen our argument for a potential push higher, we can also use Bollinger Bands (in this case they’re set a 2,20, or two standard deviations above and below the price of Bitcoin). When RSI is at or near its 30-line, and Bitcoin hits or penetrates its lower Band, we typically see a bounce. But we can strengthen our argument even more.
We now turn to Full Stochastics. When it drops to or below its 20-line, it tells us Bitcoin is oversold and ready to bounce. We can also throw in Williams’ %R – which actually turns higher and lower before Bitcoin does. With Williams’ %R, when it drops to or below its 80-line, it also confirms Bitcoin is oversold.
When all four indicators align in oversold territory, we know a bounce is around the corner.
For now, we’ll let you play around with it. We can jump into how to call tops in our next article.
If you’re tired of sitting on the sidelines keep reading because they said Crypto was dead…but it went up 100X.
Bitcoin’s haters are out again.
Despite the price doubling in the last six months alone…
That hasn’t stopped the experts from piling on.
Warren Buffett’s right-hand man Charlie Munger called crypto investors “idiots” in one of his last interviews.
JPMorgan CEO Jamie Dimon, recently called Bitcoin a “pet rock” and “a hyped-up fraud.”
But when it comes to cryptos, these are exactly the people you shouldn’t listen to.
They’ve predicted crypto’s demise for years.
One website, 99bitcoins, has tracked it.
In 2018 alone, over 100 media sources proclaimed the death of Bitcoin.
Yet it rose 1,825% afterward…
They could make exponentially more than Bitcoin.
Click here to get the details on this exciting crypto project.
