Bitcoin Rally: Game On?

Institutional Crypto Research Written by Experts

Author

Markus Thielen
September 20, 2024

👇1-14) Bitcoin remains one of the most compelling assets in terms of risk/reward potential for generating returns. Since cautioning about downside risks following Bitcoin's March/April peak, we have adopted a tactically bullish stance after Bitcoin's sharp declines.

👇2-14) On September 9, when Bitcoin traded at $54,800, we released a bullish report highlighting the oversold condition of the stochastics indicator alongside other technical reversal signals. The next day, we issued a follow-up report on our oversold Greed & Fear Index, which has historically indicated tactical rebounds in Bitcoin. These two reports underpin our shift toward a more bullish outlook on the Bitcoin rally.

👇3-14) We also noted that a breakout above Bitcoin's descending trend line could signal stronger upward momentum, potentially allowing Bitcoin to surpass the 21-week simple moving average ($60,996), a key indicator of whether it is in a bull (above) or bear market (below). As we outlined, a break above this level would target $65,000 (now within reach).

👇4-14) Notably, our trading signals have increased long positions to 70% net long for the first time. Based on historical pattern analysis, this shift suggests that Bitcoin and Ethereum (see trading signals August 27 and September 13) could present attractive buying opportunities with a 2-3-month time horizon.

Bitcoin Support is at $52,599 and $56,000, while Resistance is at $64,490

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