Chris note: This week, we’re handing the reins over to world-renowned crypto expert Teeka Tiwari…
If you’ve been following The Daily Cut, you know cryptos are rallying after a long Crypto Winter. And yesterday, Teeka highlighted some of the catalysts that could push the crypto market higher in 2019 and beyond.
Today, he shows why the downtrend for bitcoin has been broken… and what you can do about it…
After almost 18 months, “Crypto Winter” appears to be finally loosening its grip over the market.
That’s why, on April 10, I sent out an update to my Palm Beach Confidential readers. Here’s what I said…
Bitcoin is probably going to go anywhere from $6,000 to $7,000 before it has a little bit of a pullback to kind of consolidate that move. And then, it’ll be off to the races again.
And you know as well as I do, anything that’s good for bitcoin is good for the broad market.
A lot of the smaller names that we own will move much further than bitcoin will move. So another 30% move higher in bitcoin could be a 300%, 400%, 500% higher move in some of these smaller names.
Since then, bitcoin is up 64%. It’s trading around $8,700 at writing. And the broad crypto market is up 52%.
But as I’ll show you in today’s issue, it’s not too late to get in…
To understand why, let’s look at the last major bear market we had, before the most recent Crypto Winter.
That was back in 2013 when bitcoin peaked around $1,200. Then it went on a massive, almost two-year-long bear market.
You can see that it went down to about $175 in January 2015. That’s an 85% plunge.
But then, we started to see the bottom finally come into place. And in late 2015, we got a massive move up.
Now, let’s compare that to a recent chart of bitcoin. You can see the peak in December 2017 in the chart below. And the red circle is where we are now.
If you look at the first chart again, in 2015, the selling was finally over. Buyers came in, and they spiked bitcoin up to a level that you hadn’t seen in months.
Now look at the second chart. That move up since April is a mirror image of what we saw back in 2015, when the bear market was finally over.
But it’s not the only reason I believe prices are headed higher…
The second is that the downtrend bitcoin has been in since last year is finally broken.
When you break a long-term downtrend, the overall trend switches from bearish to bullish.
And the way you make money from that is by taking advantage of each pullback.
The pullbacks we’ve experienced in the last 18 months were making lower lows and lower highs. What will now happen is that when bitcoin prices fall back, they will make higher lows.
Now, of course we don’t know that 100% until we see that next wave of selling come in.
But if history is any guide, it suggests we are going to break out to a new level, and then come back a little bit. And then, we will see another resurgence of prices.
I’ve been waiting for that downtrend line to be broken… and for a major move that indicates that buyers are starting to get impatient. And that’s exactly what we’ve seen take place over the last couple of weeks.
Does this mean we’re never going to have volatility again? No. Of course not.
What it does mean is that we will see a series of higher lows and higher highs – the definition of the beginning of a new uptrend.
Given the recent surge in volume and interest we’ve seen in cryptos, a shock of good news could completely change the game.
Then, it would be like 2017 all over again. And I want to make sure we’re prepared for it.
Just remember, you only need to take a small stake for the potential of life-changing gains. So position-size rationally when you’re buying cryptos… and continue to be patient.
We are at the very beginning of a new uptrend in crypto prices, and it’s going to be wild. It’s going to be much bigger than what we’ve seen before.
Let the Game Come to You!
Editor, Palm Beach Confidential
Chris note: What’s Teeka hearing from his insider network? What can you expect for the rest of 2019? Is Crypto Winter really over?
If you’ve been following cryptos, we know you have a lot of questions about the rally we’re seeing right now. And tonight at 8 p.m. ET, Teeka is going to answer them live.
Today, a reader turns to gold – one of our favorite forms of disaster insurance around Legacy Research…
It would be nice to see gold soar past the December 2011 $1,950 price and go much higher. I believe strongly that mining stocks and royalty companies will pay off in the long run. Plus, non-digital assets will be the best long-term insurance policy. It’s the only way to turn around the global fiat-money system.
I’ve always considered it two-faced when the central banks tell us “little people” gold is a useless relic… yet they continue to hold it and buy more! It’s clear they know something us little people don’t.
– Jim M.
Meantime, at least one of your fellow readers agrees with master trader Jeff Clark’s insights about when to take profits… (Catch up here if you missed Jeff’s essay, “Would You Take the $2,000?”)
Great advice on profit taking. No one can ever sell at the highest absolute tick, especially when options magnify gains or losses in both directions. If you’ve hit your target price, pat yourself on the back and move on. There’s always another trade to deploy your new capital towards. Profits are never bad.
– Rod S.
Are you buying gold, or do you believe it’s a “useless relic”? What do you want to hear from crypto expert Teeka Tiwari at tonight’s live Q&A? Write us at [email protected].