Truth in Crypto

Bitcoin Breakout

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Andrew Elliott

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Building Momentum

For about two weeks Bitcoin (BTC) had been riding the upper line of the year long ascending channel formation mentioned in my post from October 4th entitled, Pros and Cons Analysis of the Bitcoin Trade (https://coinsavage.com/2017/10/04/pros-cons-analysis-bitcoin-trade/). Today Bitcoin is breaking out above the top line of the ascending channel.

(Source: TradingView)

The Catalyst

Yesterday the CME Group announced plans to launch Bitcoin futures. This will allow for more institutional players to get involved in Bitcoin, and opens the door to a potential ETF in the future (https://srv/bindings/506c31e2284a4fb3a7b6cf3a309887c7/code.cnbc.com/2017/11/01/bitcoin-price-hits-6500-to-new-record-high-after-cme-futures-plan.html). This development has caused a Bitcoin (BTC) breakout, as it fuels buying demand for the asset. Since the announcement, over $10 billion of new money has poured into the crypto asset market.

(Source: Coinmarketcap.com)

Bottom Line

Breakouts of this nature tend to mean that the asset will appreciate considerably while establishing a new trading range.

As always… Invest Savagely.