Bitcoin Blasts Off

Three days after we called for Bitcoin futures reaching $10,000 by mid-May BTC dashed out the gates right at the buzzer that went off today signaling the start of the race. BTC took the lead early on doubling the pace of other markets that were in the race such as U.S. equities, crude oil and the entire precious metal complex. All of these macro markets made huge gains today, over 4% in silver and palladium benefiting from their safe haven allure as well as industrial components. We saw a 2.3% increase in gold due to its safe haven status. We saw a 1.5% average gain in U.S. indices, add these percentages together and you have the sum off silvers total gains as it has a foothold as both an industrial metal as well as being a leading safe haven or risk off assets.

But even these front runners were left to choke on BTC’s dust as it dashed from $9,300 to prices above $10,000 before settling just below that price point at $9,900 and currently as of the close of New York markets hasn’t given up ground exhibiting a gain of 6.26% ($585) in BTC futures most active contract month of May (BTC K20).

Traders taking our call yesterday are sitting with approximately a $3,500 gain per 5 coin contract from yesterday’s call to action for anyone not already engaged from the long side. We suggested entering yesterday at approximately 8 PM EST at the market which sat at around $9,300. At the time our target was at $10,000 noting that although it may continue higher we don’t have any clear data suggesting that it will move any higher.

So for conservative traders can keep stops at $9,250 or even better pull profits, your never wrong exiting a trade in the green. Now for traders that aren’t convinced that the rally has ended and want to have exposure in order to benefit from higher prices should have their protective stops at $8,900.

Either way I wouldn’t recommend entering at this point if you missed the chance to earlier this week, instead wait to see how BTC reacts at quite possibly its favorite place of $10,000. The most likely action for the remainder of this week will be sideways rather than leaning bullish or bearish so best action from the sidelines would be to remain there keeping a close eye at the open off the markets next week