April 25, 2024, 11:35 am EDT
Bitcoin Rally and Convergence
Bitcoin and all other cryptocurrencies enjoyed a strong rally from the beginning of 2023. Its ETF (GBTC) price soared from 7 to 65 till April 2024. One of the major reasons behind this performance is the recognition and acceptance from the US Security and Exchange Commission or SEC. Many ETFs like GBTC which are based on the price movements of various virtual currencies are issued. It means mutual funds, hedge funds, and thousands of institutions can put money into this area.
As shown in the featured chart, GBTC made three staging rectangle bases and two strong uptrend channels that made up 7-8X returns within 1 year and two months.
However, it is important to recognize that it seems to have been exhausted in the past two months. Its convergence pattern at the top reveals that it paused on the advance.
Of course, it could rest a bit and continue to make a new high. But, there is also an opportunity that it reached the top and a major downtrend is on the way. Which way is more likely to happen?
There is no need to guess. Technical analysis teaches us to draw and observe rather than guessing or speculating. One easy way to judge is to look at the upper and lower boundary from this convergence pattern. When the line is broken, then we know what is the choice.
Life is simple when we look at the facts and judge the reality.
