Boom goes the Bitcoin

Bitcoin futures blasted off on Monday not only past the prior high for the year but more importantly it has traded above the descending top that has defined price action since Bitcoin futures began trading at the end of 2017.  This upper level of resistance had only been touched upon at the peak of the 2019 rally and once more last month on the June 2nd’s intraday high. This gives the bullish faction a renewed and rekindled sense of strength and vigor. The fact that Bitcoin achieved this yesterday when gold hit a new all-time record high and silver gained over 7% supports the argument that Bitcoin is indeed acting as a true safe haven of the younger generation gaining over 13% on the same day.

Last week when BTC futures broke out of its descending triangle and above its 50-day moving average we said that BTC was on a path to test resistance at $10,500. We cited the fact that based on past action Bitcoin futures had a one in three chance of beginning a large extended rally after crossing above the 50-day moving average.

Then last night we had a long legged doji with a higher low and a higher high. Speaking of the high achieved last night at $11,540 was about $30 shy of touching the 50% Fibonacci retracement at $11,575. While this rally easily has the potential for reaching the .618% or even the .78% retracement levels, we must also note how prices have eloquently come back into alignment with our long term projected price which as always is drawn in our charts with a dotted green line.  So while Bitcoin prices will most certainly continue to climb with the other precious metals let us just take it all in and be happy we have taken out BTC’s  nemesis the descending wedge, we will shortly experience the energy that this has unleashed.