Bitcoin (BTC) is no longer just another tech stock.
It’s acting more like Gold, less like the Nasdaq100. So we’re told, but what does price say?
The U.S. Dollar continues to break down. How long will that continue?
Only the market can decide those questions.
Here’s what we do know…
The world’s No. 1 cryptocurrency is breaking away – from stocks and the dollar.
And we’ll know the breakout has real legs when BTC rallies above $102,000.
Bitcoin Breaks Out
This is Bitcoin hitting a six-week high:
Bitcoin posted a two-day gain of nearly 8% through Tuesday.
It’s on pace for its best week since November. And it’s already retraced over half of its 30% drawdown.
More importantly, BTC has regained a key level – $90,000. This level has been a battleground since the presidential election.
The $100,000 level is a big, round number.
But from a technical perspective, the breakout gets real if we see a rally above $102,000 that actually sticks.
It already failed once out there. Another attempt could really get things going.
The next target is $150,000.
This target – BTC $150K – is based on the Fibonacci Extension math we discussed earlier this week.
The relative strength is certainly there.
Bitcoin is particularly strong relative to tech stocks, which carry huge weightings in the popular U.S. indexes.
Take a look at the iShares Bitcoin Trust (IBIT), for example, hitting a new all-time high vs the Invesco QQQ Trust (QQQ):
We have several positions in Bitcoin- and crypto-related stocks and ETFs.
And we’ll likely be adding more Bitcoin and crypto exposure as this bearish divergence in sentiment continues to unwind.
That’s what this is all about. We’re taking advantage of major swings in positioning.
We’re zigging while the others are zagging.
So it’s important to pay attention.
You Can See $150K From Here
I’m sure you’ve been paying attention to financial markets over the past few weeks.
And I’m sure you’ve heard about Bitcoin’s “resilience” while U.S. stocks and bonds are selling off.
BTC is even making new highs, despite all the selling pressure.
The No. 1 cryptocurrency is showing strength against a weak dollar.
Its performance is especially interesting when you compare it to the recent behavior of tech stocks.
IBIT just hit a fresh all-time high relative to the tech-heavy QQQ.
If this breakout sticks… we’re already positioned to profit from it.
Are you with me?
Stay sharp,
JC Parets, CMT
Founder, TrendLabs