A1 Trading Company

Ticker tape by TradingView

February 7, 2022

Bitcoin Surged- Do This Now!

Frank Cabibi

Bitcoin finally popped on consumer demand after we discussed a potential surge last week in this article. This seems like a crypto-led rally since tech stocks are not causing a spike in the market overall. COT doesn't even suggest a big money shift into the crypto industry, so this move must be a retail rally.

How To Trade The Bitcoin Surge

The problem we face as the smaller investor always comes down to FOMO or hesitation. When we see the price of an asset spike, we either come to one or two conclusions: we hop in or we stay on the side lines. Both decisions can lead to good or bad consequences, so it is never an easy choice. However, that is when the smart investor will starts evaluating the possibilities.

Bitcoin
Bitcoin broke above the $40K psych level and is not testing resistance in the $43Ks. A big bullish indicator would occur if the pair could close above the 50 DMA today. This would suggest a higher move above resistance and another test at the 200 DMA.

If you are still not holding any BTC but want to get in, then you could consider what's going on in other markets. For example, the dollar (DXY) is down today after losing just over 2% from the highs last week suggesting that the USD is hurting from inflationary pressures.

Mixed earnings is also causing some uncertainty in the equities market, and investors are unsure of where to put their money. Crypto has been in a downtrend for months that were initially sparked by regulatory concerns late last year. The crypto market tends to go in and out of these cycles making them the perfect choice for profitability one month and an account-blower the next.

Additionally, we know the momentous moves bitcoin and other altcoins can make. So, a pop like this might be an indication that this is where investors are putting their money. This means that the gains on BTC so far could be just the beginning.

Other Altcoins To Watch

Bitcoin
ETHUSD also looks promising on the 1D chart after coming above resistance and nearing the 50 DMA. It's the same idea as Bitcoin: if we can see a close above current resistance, we will likely see a move higher to the 200 DMA.
Bitcoin
ADAUSD is bouncing up over the wedge on the 1D chart and nearing the 50 DMA as well. Due to the recent crypto surge, we could see Cardano coming to the top of the wedge. The downtrend suggests that momentum probably isn't that strong to the upside, but a move higher to the top of the wedge seems likely.

A1 Edgefinder

#1 Market Scanner Tool
Take 10% off using code "READER"
GET ACCESS NOW
Want to See Our Trades?

Join The VIP Community!

Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
Listen to More Episodes
Why the New FOMC Decision Matters

Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]

Read More
Shocking CAD Inflation News

Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]

Read More
2 Paths for Aussie Bears

At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram