As a follow-up to yesterday unofficial trade idea on /BRR (Bitcoin futures) and GBTC (Bitcoin Trust), I’ve decided to go ahead and add GBTC as an official Long Trade Setup, with an entry to be triggered on the next break above yesterday’s high of 8.63 (i.e.- any print of 8.64 or higher). 60-minute chart below.
GBTC 60m Dec 19th
The price targets for this trade will be T1 at 9.21, T2 at 10.46*, and T3 at 11.83, with T2 & T3 at the same levels as the first & second (final) targets for the last official long swing trade on GBTC which hit that final target for a 27% profit back on October 28th.
The maximum suggested stop (if targeting T3) for this trade is 7.72 with a higher-stop using an R/R of 2:1 or better if only targeting T1 or T2. Due to the high-volatility & above-average risk/return potential when trading Bitcoin, the suggested beta-adjusted position size is 0.6, or about 3/5ths of a typical position size.
BRR daily Dec 19th
The charts of /BRR (Bitcoin futures) continue to firm up but could use a little more upside to help firm up the case for a rally. /BRR printed a bullish engulfing candlestick on the daily chart (below) yesterday to rally into & close right on the minor downtrend line. So far, /BRR crossed above the downtrend line with today’s candle (remember, futures trade nearly around the clock) but not very impulsively & so far, /BRR has pulled back & is currently backtesting the downtrend line from above. My preference is to see “confirmation” of a bullish engulfing candlestick (a potential bottoming/reversal stick) via follow-through the next day (and ideally the following day as well) with an additional green close(s).