Here’s my take on Bitcoin and the iShares Bitcoin Trust $IBIT – March 20, 2024
Dan Fitzpatrick at StockMarketMentor.com. No, I’m not going to be trading Bitcoin here, but I do want to look at the chart here. The reason is that I’m going to be going into, what I call, IBIT, the iShares Bitcoin Trust IBT ( NASDAQ: IBIT ).
But first, let’s look at the underlying here. This has been in this downtrend, it’s been a significant downtrend here with the, I think this is the 100-day moving average defining resistance. Just today this thing broke through; the 50-day moving average is now starting to pull upwards again, because of these strong moves here.
I’m looking at this right now as this is the key break. Now, this is the 200-day moving average, so you can see where this is really where the resistance is, right here. So I think if we are going to look at that, we’ve got about 69,000, which would be resistance, I’d say about $1,000 from where it is right now, something like that, right around there because each day that goes by, this moves down just a little bit more.
So that’s really a level that I would look at as some kind of technical resistance. But because of what’s happening in the Bitcoin market now, with halving coming up and all these other things. I’m not sitting here pounding the table, like I’m a big Bitcoin bull, though, full disclosure, I am. I bought a bunch more even today. I look at this, and I think it’s going a lot higher.
I bet that by tomorrow, the way this is going, I think you are going to wind up seeing a test of this 200-day moving average. That leads me to this because I just like to talk about stocks here. So if we look at this, I drew this anchored volume-weighted average price indicator from the low here, from this last low, all the way up here. There’s not been a day where it’s been negative.
Yesterday this came down and almost touched the anchored volume-weighted average price. So based, by the way, on all the shares that have traded since this low, the average price is right about here. It tested that general area and rallied higher. Today, this came down, it started a little bit lower, just slightly lower than yesterday’s intraday low. You can see, it’s put a heck of a move, almost 7 percent up from where it opened.
I look at this and I see something that’s going higher. And if I’m correct about Bitcoin, I think I am also going to be correct about this. I can see this thing coming to a new high very soon. So my suggestion is, if you’re not long I don’t think it’s too late for you to get long this. You’re going to have to give it about 9 percent room to pull back again.
But ultimately, just because of what’s happening in the crypto market, particularly with Bitcoin, this is something where you want to hop on that train. You don’t need a wallet for this, you could just buy the stock. It’s, essentially, the same thing as buying Bitcoin. I know some of you anal-retentive types are going to go, no it’s not, it’s not quite the same because they charge you a fee. I get that, it’s the same as Bitcoin, that’s the way I look at it.
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