April 27, 2020: Here’s how BTC can make it to $8200
Bitcoin is consolidating after establishing multiple higher lows, making a strong case for bullish momentum moving into this week.
Good morning, Alpha Traders! Today we’ll quickly cover Bitcoin and how we’re positioning ourselves in the equities markets, but be sure to watch the weekly equities breakdown that we posted yesterday to better understand what happened last week and how we are positioning ourselves in the markets moving forward. We threw in a couple free trading picks at the end.
Bitcoin consolidates bullishly as equities climb.
Looking at the descending trendline coming from the top of the recent short squeeze near 7800, we see that the price broke out to the upside after several touches of that trendline. Be careful not to have tunnel vision — Bitcoin markets have been heavily reliant on equities Markets ever since the COVID market crash.
The S&P 500 E-mini Futures has made a significant stride upward in the past several hours, another positive sign for both equities and Bitcoin. I’ll point out that futures aren’t consolidating as clearly as Bitcoin, but so long as equities either consolidate on a high note or continue the climb upward, Bitcoin should continue its bullish trajectory as well.
Looking at the 4 hour time frame, Bitcoin sits in the heart of the consolidation period established between March 9–11, and price has spent about four days near the resistance of this consolidation zone.
If you understand basic technicals, you’ll know that when price spends that much time near resistance, there’s a higher possibility that it’ll break to the upside. It’s just a matter of knowing whether it’ll go straight up or consolidate before continuing this trajectory.
Alternatively, a shorting opportunity would appear if price falls to test the support as per the chart below, breaks down and retests that area as resistance (not investment advice). You can place a stop based on the first wick into support after the short squeeze based on the 30-minute time frame, as that area would become the next important resistance level in that scenario.
If the bear scenario plays out, there’s a high likelihood that price goes to the level of 7180 to about 7100. Support for that movement has yet to be seen, as price is resting in a bullish posture this morning while the S&P 500 leads the charge.
In the larger time frames I remain bearish on the market, but over the past several years I’ve shared with the Alpha Trades community how I trade the intra-day movements such as last week, when I published four long positions that yielded a meaningful profit.
The market constantly provides opportunities to short or long across different assets and time frames. That’s why we teach our community to be unbiased in their trading strategy.
Once we get a break to the upside, there’s nothing stopping Bitcoin from reaching 8150. Price could break out well past that level, but remember from our previous videos regarding the recent short squeeze — Successful trading isn’t about capturing the entire move, it’s about consistently locking in profits.
How I’m playing equities, oil, and emerging markets.
I’m looking to short the EUR-USD pair, as price has exploded up from the level where I closed last week’s successful short. It’s been an easy asset to trade, and if you watch our recent equities videos, you’ll see that we are also considering shorting emerging markets against the US dollar.
Here’s a quick tip: Because oil commodities went negative for the May futures contract, I personally think the June contracts will also go negative. June’s contract price is already starting to drop, and this is one asset we’ll be watching carefully in the community.
I think the USO ETF, which I suspect a lot of retail traders are currently trapped in through the Robinhood exchange, will fall to $1 or less, and perhaps even be delisted.
Alpha Trades spends hours each day to bring you the most current market information. If you find this content useful, you can find more information when you click through to this morning’s analysis video on Youtube below. There’s also a couple of free trade ideas near the end for the stock market this week.
Cheers, keep your stops tight and have a great day!
Information provided by Alpha Trades, LLC is not intended to be utilized in making any financial decisions and is not a solicitation, nor recommendation to buy, hold, and/or sell a particular product, digital asset, or ICO.
This article was adapted from our weekly Sunday market overview video, recorded at 6:00 AM, April 27 while the price of Bitcoin was at 7710.