All traders should now be flat

After hitting just above $16,000 today in the CME traders taking our call to enact a good to canceled order suggesting to enter from the long side last week should now be flat after pulling profits when their GTC order was canceled out at today’s intra-day high. However, the intra-day high that was hit in Bakkt was just below our target and came in at $15,935. Currently, as of 3:30 PM EST, Bakkt futures are trading t approximately $15,440 and traders who took on the trade on this exchange should sell at the market for an even trade meaning no loss and no gain. The same should be done for traders in GBTC (Greyscale Bitcoin Trust) currently trading at $16.95 for a loss of $0.05 per share.

The reason for exiting our trade in those markets that did not hit our target is as follows. First and foremost is the technical data including a peak in the RSI, the fear and greed index at a high of 90, and a “three river evening star” on a daily candlestick chart in some form in the various Bitcoin futures markets is signaling that a pullback is highly likely before any more gains will be realized.

One event that has indeed cemented Bitcoin’s yearly high may have been hit is the announcement of a potential vaccine now in its third stage of trials for COVID-19 has shown a 90% effectiveness rate certainly led to the sell-off but was more bearish in the precious metals complex were gold and silver both were down approximately 5% at their lows today. It does bear well for the future of Bitcoin’s further climb that they held up far better and did not follow the same path as either safe-haven or risk-on assets the latter of which saw a boost today as risk-on assets saw a huge boost by the vaccine announcement. This is painting a picture where Bitcoin is largely in a group of its own and will continue on its path to higher and higher prices. However, this path to higher ground is likely to continue only after a price pullback, so short-term traders should now all be flat the market.