What a morning? Finally, some excitement to wake up to in what seemed to be a lifeless market. This morning’s report basically writes itself. For the last few weeks we have been discussing the lack of volume in the market and what exchanges to trust when it comes to potentially fictitious volumes and data. Our piece on March 19th nailed the move that we saw early this morning. We wrote, “Unless large buying volumes come into the market, probing is all we shall see at that resistance level. We believe it will take a serious force of buying to take those levels out to the upside.” Today we are seeing these large buying volumes.
In that same morning piece, we also wrote, “the April (4/26/19) $4,250 calls can be purchased around $135. The April options can give you a month and week or so of time to sit on this market but know you can realize gains on a sharp move to the upside.” Today these April (4/26/19) $4,250 calls are worth ~$625. This would have been a nice ~460% ROI.
Back on Feb 11th we published our price targets when BTC was trading $3,600. We wrote, “While we are still in the bear market, any price correction can be significant. Our downside target is in the $2400-$2800 range. A short covering rally may easily take BTC to $4030-$4300 cluster of previous highs or even to $5600-$6000 support level that has become resistance. If the market exits a bear stage just a 33% retracement of the selloff would take BTC to $8700.” Now that we have punched through the $4,200 resistance on high volume, we look at that level to turn to support on a retracement of this mornings rally. A continuation of this move north of $6,000 will cause us to view this BEAR market as dead.