Bitcoin has tripped the second major buy signal in a month with a drop to the green line (inset). It is also on a lesser buy signal from Friday that is tied the hourly chart. Taken together, two simultaneous ‘buy’ signals might sound bullish, but in this case the yellow flag is out, since BRTI failed to reach the D target at 72,148 on the first signal. The second is worth about a 6.6 on my rating scale, implying that I give this vehicle a 66% chance of reaching D. Are those odds good enough to risk more than $7000 per round lot? I think not, although I’d give a rally from the green line to the red one a 78% chance. That would imply risking $1 to make $1 — not exactly a formula for trading success. A better approach would be to limit the entry risk by creating a tradeable pattern of minute degree (aka ‘camouflage’). I looked at one such pattern on Friday in the chat room and will do so again if there is interest, so stay alert if you care. ______ UPDATE (Apr 27, 10:33 p.m. ET): BRTI is creeping up on p=57,595, where yet another ‘mechanical’ buy can be half- or fully covered, this time for a profit of up to $30,000 on four lots. (As far as I’m aware, ‘Trader Mike’ is the only subscriber who’s routinely doing these big-picture ‘mechanical’ trades.)
BRTI – CME Bitcoin Index (Last:55,682)