Crypto

Although some analysts believe that there is a distinct difference between what is fueling this rally compared to previous rallies seen in Bitcoin, I do not see this distinction as different enough to negate BTC from a pullback after such a parabolic rise that we have witnessed recently in Bitcoin and believe it is still susceptible to a correction in the near term.

Today Bitcoin hit its target we were calling last week on the nose. While it is true that we recommended pulling profits last week in an abundance of caution after a variant of a candlestick pattern formed “three river evening star” on a daily chart after coming within $150 of our target for this leg of the rally.

While Bitcoin just hit a record high that hasn’t been touched upon since early January of 2018 when Bitcoin had a “dead cat bounce” on its way down from record highs. This “dead cat bounce” or short-term recovery amidst a declining market occurred at the end of December 2017 and brought prices briefly higher from roughly $13,500 up to $16,500 in early January 2018.

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.

Three factors brought Bitcoin to its highest price since falling from all-time highs at the end of 2017.