What 100 Birthday Bitcoins Taught Me

In 2011, Tom Dyson – a titan of the financial newsletter industry – offered me a birthday gift worth $200. [Jeff Clark's Market Minute]( What 100 Birthday Bitcoins Taught Me By Brad Hoppmann, analyst, Market Minute In 2011, Tom Dyson – a titan of the financial newsletter industry – offered me a birthday gift worth $200. It was 100 bitcoins on a thumb drive. Tom gave those to me after a long debate in which we pondered Bitcoin’s true nature. Was it an asset… or a currency? Tom firmly believed it was a currency, saying “Brad, take this thumb drive… and witness how it's indeed a digital currency.” Bitcoin’s spectacular journey from those early days has been nothing short of extraordinary. Today, as Bitcoin approaches $41,400, those 100 bitcoins would be worth a staggering $4,140,000. Bitcoin has clearly transcended the initial debates, firmly establishing itself as a major trading and investment asset. So… what now? As Bitcoin continues gaining legitimacy, we can apply all manner of technical analysis to it. Let’s do that today… Technical Analysis: RSI and BITO In previous issues, we used the Relative Strength Index (RSI) to assess market conditions, such as identifying overbought sectors. The ProShares Bitcoin Strategy ETF (BITO) has an interesting scenario: over the last 10 days, its RSI has increased to over 70. Recommended Link [The One Ticker Retirement Plan]( Over the Shoulder Demo Now Available [image]( Market Wizard Larry Benedict crushed the market in 2022. But he didn't do it with a “traditional” method… For a limited time, he’s sharing a free over-the-shoulder “demo” of his strategy in action. It takes less than 10 seconds… [Watch it here.]( -- This could indicate an overbought state… but with Bitcoin, it might also signal a potential breakout. Breakouts and Resistance: A Technical Perspective Identifying true breakouts means understanding resistance levels. On BITO's chart, a resistance line has formed at around $19.50, marking the recent highs. When the price decisively crosses this threshold, it often signals a breakout and an upward trend. [Image] Bollinger Bands: Deciphering Market Movements Bollinger Bands are instrumental in this analysis. These bands include a middle Simple Moving Average (SMA) line flanked by upper and lower bands, representing resistance and support levels, respectively. When BITO's price surpasses the upper band, as it has recently, it implies a strong trend continuation – a key indicator of a breakout. [Image] Adding MACD to the Analysis The Moving Average Convergence Divergence (MACD) is also valuable. Recently, BITO's MACD indicated a shift from downward to upward momentum, shown by the fast line (12-day MA) crossing over the slow line (26-day MA). This crossover suggests strengthening upward momentum for BITO. It’s a very strong confirmation of a breakout. [Image] Qualitative Support: What’s Driving Bitcoin’s Rise? Bitcoin's recent surge is due to several factors. A few legal cases were recently resolved in cryptocurrency’s favor. The growing possibility of purchasing Bitcoin through traditional stock exchange funds rather than less-regulated crypto platforms has sparked considerable interest. The listing of a BlackRock exchange-traded fund for Bitcoin, given BlackRock's stature as the world's largest ETF provider, is giving cryptocurrency more legitimacy. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Early Belief in Bitcoin: A Rewarding Insight Looking back at Tom Dyson's gift of 100 bitcoins, Bitcoin’s journey from a novel digital currency to a significant financial asset is remarkable. Those early beliefs have been vindicated many times over for those who embraced Bitcoin from its inception. The Path Ahead for Bitcoin Bitcoin’s path remains inherently volatile. The cryptocurrency's future will be shaped by technological advancements, regulatory changes, and evolving market sentiments. From a shared debate to witnessing its latest market breakout, my journey with Bitcoin has been a testament to its captivating evolution. Using technical tools like RSI, Bollinger Bands, and MACD to analyze BITO has given us a structured method to understand Bitcoin’s market movements. As we continue to observe Bitcoin's growth, staying informed and adaptable is crucial in navigating its trajectory. Leveraging data for you, Brad Hoppman Analyst, Market Minute IN CASE YOU MISSED IT… [AI IS BORING!]( AI’s all over the news. And AI stocks have gone on a tear. But there’s a huge problem with AI: it’s BORING! Consider ChatGPT, the most hyped AI… You ask it a question, and it produces an answer. It’s just a word machine. Yawn! I’m tired of boring AI, even though I used [what Harvard calls the “Super Platform driven by AI”]( to make over a million bucks last year. So forget ChatGPT! [Let me show you an exciting AI.]( [Here’s my 2-minute demonstration of Elon’s AI in action.]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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