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Crypto-Technical Series: Bitcoin Staged For 8th Consecutive Weeks’ Rallies, Long Hedges As BTC Reclaims $10k With Resounding Engulfing
Bitcoin price has resumed its bullish business back again as expected in our previous post (1st chart), the renewed strength by edging higher above $9.8k levels. The pair BTCUSD has surged and staged for 8thconsecutive weeks’ rallies (refer 2nd chart), some sceptics of crypto-space still looks apprehensive ahead of block-halving event that is scheduled for 13th of May that drives them to maintain smart hedging at least.
Technically, ever since the occurrence of hammer at $5,037.61 level, the bullish pattern takes-off rallies above 7, 21 & 100-DMAs with bullish crossovers. Consequently, bulls in minor trend breakout the stiff resistance zone & shrug-off shooting star in this upward journey, where bullish engulfing also pops-up signals the renewed buying sentiments.
While on a broader perspective, the pioneer crypto has risen above 100-EMAs and retraced 23.6% Fibonacci levels of the Dec’2018 lows and all-time highs in Dec’2017 (refer 2nd chart).
Accordingly, the long hedges have already been advocated using CME BTC Futures about one and half month ago. 1m ITM call options, in addition, have also been recommended.
These positions have been functioning as per our expectations so far, if we keep speculating on the next upside target and accumulate fresh bitcoins, it would be unwise. Instead, one can certainly uphold the above advocated long hedges for now.
Please be noted that since mid-March, BTC has spiked from $3,858 to the current highs of $10,000 which is 159% rallies & staged for 8th consecutive weeks' highs. And, from April'16, the BTC has spiked from $414 to the all-time highs of $19k, currently, trading decisively at $10k levels, which is still a mammoth 2,315% rallies.
Therefore, in addition to the long build-ups, for those who are already holding bitcoins are advocated the above-mentioned hedging strategies at this juncture.