Looking for a good entry on Bitcoin ($BTC)? Well, I can get you halfway there with Grayscale Bitcoin Trust ($GBTC) (March 05, 2021)
GBTC
I want to look at Grayscale Bitcoin Trust ( OTCMKTS: GBTC ) in this video and here’s why: There are actually very few buying opportunities on this thing. You have got to know what this is, it’s not really a proxy for Bitcoin (BTC). I called it a stock one time and somebody very quickly corrected me on Twitter; it’s not a stock, it’s a trust; thank you, I appreciate that, that would be the “Trust” word here. What I am looking at is the chart.
This is the deal, if you look at the weekly chart, it’s been one heck of a move here. Very few opportunities to buy near the red line, that’s the 50-day or 10-week moving average. So if we come back here, this has been kind of a long slow, and painful. I own this, I actually own quite a bit of it but it’s in a longer-term account. And you know what? I don’t like it when I see something fall 30 percent, but I held through this thing.
Do you know what I am probably going to do on Monday? I am probably going to add to the position because this is giving you a really good zigzag trade. A big one here, back to the 50, and then off to the races. And then another pullback to the 50, this was on Friday, closing here, I think you are buying right here, looking for that, but ready for that. That’s how I would trade this thing, it’s pretty easy. You look at the volume, pretty heavy volume here.
Also, you see what the Fed is doing and every other darn thing. Bitcoin (BTC) I think is probably going to continue to be strong. Do I think it’s in a bubble? You know what? I think the earth is in a bubble, we’re in one big bubble. So sure, I would just say ride the bubble, ride Grayscale Bitcoin Trust ( OTCMKTS: GBTC ). Keep a stop below the low here of 37.88, just keep it around 37.80, something like that, and my bet is, you are not going to get stopped out.
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