Thursday, April 1, 2021

Writing on the Wall: Bitcoin and how to play it with MARA, RIOT, CAN

This post will detail some speculation on why believe Bitcoin will soon break 60k and potentially move to 70k within the next month or two. I'm fairly confident the bull run for Bitcoin is not over yet and will continue into this year before we see a correction.

-Current Price of BTC around time of this post is around 58k-

External Catalysts

The past few weeks there have been an onslaught of positive news for BTC . To name a few major ones:

- Paypal is now incorporating use and everyday people can exchange BTC and other cryptocurrency.

- Square, Tesla, and several other companies have included it in their balance sheet. Microstrategy essentially embraced their whole mission around it. Overstock accepts BTC as payment.

- Spending will be high with the stimulus package and other bills under Democrats. BTC can be seen as a hedge to the dollar

- Visa and other credit cards have also started incorporating it.

More importantly, there are major catalysts that will be coming this April that will likely propel it forward more:

- BTC ETFs are already being submitted by major institutions like Fidelity. When the GOLD ETF was introduced, the value of gold went on bull run the year to follow.

- Coinbase IPO will be happening in April if there are no more delays. This one is major! Just the event will get the talk of cryptocurrency spread and be the chatter of the month.

- Literally today Chipotle is getting in on the fun too with their Burrito or Bitcoin event: https://newsroom.chipotle.com/2021-03-30-Burritos-Or-Bitcoin-Chipotle-To-Give-Away-200k-In-Free-Burritos-And-Bitcoin-To-Celebrate-National-Burrito-Day

Technical Analysis:

BTC this week reached almost 60k three times this week.

Key levels of Resistance: 60k, 64.5k

Key levels of Support: 53k, 51k

Settling at 58k is very bullish at it means it is bouncing above the 9-day and 21-day moving averages. If it's able to hold this it should be able to get to around 62k. If it passes the mental wall there, it can easily surge to 70k before correcting. If it fails to support 55k then we could see a downside

Tickers that follow Bit Coin: $MARA, $RIOT, $CAN

I chose three tickers to focus on that will likely benefit from a rally. I know there are other ones like SOS, BTBT, FTFT but those are high risk from what I've seen having short reports written up on them. And when Bitcoin goes down, they go down hard. Let me know if there are any new tickers that follow Bitcoin too.

MARA

- Bitcoin mining company I've been following since it was 5$. Has strong support

- Recent News: To Launch the First North American-Based Bitcoin Mining Pool.

- Reached a 52week high over 50+ today

RIOT

- Same as MARA a crypto mining company I've followed since it was 10$. It's always been slightly ahead of MARA but it seems the gap is closing.

- Recently reported GREAT earnings 300% surprise in EPS

- Heavily shorted (20%) which may be why it has not been climbing as hard in following BTC, but will easily soar multiple levels if Bit rallies hard enough.

- Reached over 70 last time BTC ran

CAN

- The only Chinese stock I singled out that could see a strong run correlated with Bitcoin if it were to run this month.

- Canaan manufactures equipment used for mining Bitcoin. As the price rises, more and more companies are enticed to mine.

- Reached around 40 last time BTC ran

Bearish Warning:

- In the past when Bitcoin has ran, there has always been a big correction afterwards. Invest at your own risk.

- Offerings can happen if the price climbs too much


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