Bitcoin Mania is Back! (Maybe)

Good Tuesday Morning, MPTraders! October 24, 2023-- Pre-Market Update: Bitcoin Mania is Back! (Maybe), Mega-Tech Earnings from MSFT and GOOG after the close... Can the Equity Indices follow through to the upside off of yesterday's upside reversal efforts?  

Bitcoin technically exploded above significant multi-month resistance at 31,800 in overnight trading, hittting a high at 35,200, and as we speak, is still up 4.4% at 34,524. My attached 4-Hour Chart shows that BTC is VERY OVERBOUGHT but also that the vertical thrust is CONFIRMED by my 4-Hour Momentum gauge, which argues strongly that the upmove is NOT complete. The technical annotations on my attached chart indicate that BTC could be heading to 39,000-40,000 before taking a meaningful breather (entering a correction).

For its part, BITO (Bullish Bitcoin ETF and my vehicle of choice for our purposes) is up 1.6% in pre-market trading at 17.55/65 (see my attached chart below) and points next to a challenge of multi-month resistance that resides from 17.70 to 18.40 that if hurdled and sustained, will project upside into the 21 area... 

 I have no idea why BTC is rocketing at this time, but my instincts tell me that it has everything to do with the budding bull market in uncertainty and much less to do with whether and when the SEC decides to approve a cash Bitcoin ETF... 

Next up: ES and NQ...

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