The IBIT (Bitcoin ETF) short swing trade hit T2 hit yesterday for an 18% profit with IBIT currently testing uptrend line support just above the T3 target/ support level. Should IBIT bounce soon, any rally back to T1 – S1 (now resistance) will offer an objective add-on or re-entry for anyone covering and/or reversing here. 60-minute chart below.
IBIT 60m Feb 28th
Likewise, /BRR (Bitcoin futures) is at price & potential uptrend line support where the odds for a reaction are elevated, especially if /NQ & QQQ manage to hold & bounce off the key support they are currently testing. Two-year daily chart below.
BRR daily Feb 28th
Remember, Bitcoin has been trading as a risk-on asset like the tech-heavy Nasdaq 100. /NQ (Nasdaq 100 futures) continues to test my key 20600ish support. Bounce or no bounce first (today), I still expect that level to break, triggering the next leg down. FWIW, my best guess is we might get one last hurrah off this support for Bitcoin & the $NDX, followed by a breakdown that will trigger a major sell signal & likely take the $NDX down to & quite likely below the 200-day MAs (and eventually, my long-term swing/trend targets). Of course, should QQQ (and Bitcoin) fail to successfully hold & bounce off these key support levels & go on to breakdown once the regular session gets underway, we could be looking at a very big down day. Stay nimble!
However, as I often say: Support is support until & unless broken. On an admin note, I will be away from my desk for most or all of the afternoon today & will post a closing market wrap after I return around 5pm-ish.