Bitcoin, BITO, and The Bitcoin Miners Remain Poised for Still-Higher Unrealized Upside Potential

by Mike Paulenoff

December 10, 2023 • 11:48 AM EST

On October 2, 2023, I posted the following heads-up to MPTrader members about the technical setup in the derivative Bitcoin ETF BITO (Proshares Bitcoin Bull ETF):

BITO (Proshares Bitcoin Bull ETF)-- For those of you who think like I do that "there IS something to this Bitcoin thing," the multi-month technical setup in BITO indeed, is intriguing because of its upside potential. My suggestion for those so inclined is to own BITO here (14.49 last), put a Good Til' Cancelled Stop just beneath 13.30, and fuggedabout it. My projected upside potential targets are demarcated on my attached chart. It seems to me that at some point, the US Government is going to cave into demands for regulated exchange trade ETFs for Cash Bitcoin and that increasingly, because of the out-of-control deficits and debt our wonderful politicians on both sides of the aisle have managed to create, a huge amount of capital will flow into regulated Bitcoin instruments as a hedge against the inevitable, coming "crisis."

In the two-and-a-half months since I posted my BITO chart analysis, Bitcoin has climbed from around 27,500 to nearly 45,000 (+64%), while BITO has climbed from 14.58 to last Friday's (12/08/23) high at 22.13 (+52%)! In addition, Bitcoin Miners RIOT and MARA, which we also have discussed on multiple occasions since early October have appreciated by an eye-popping 86% and 134%, respectively from the time I humorously, but very seriously, suggested it was time to own BITO (RIOT and MARA thereafter) in expectation of a powerful technical advance in the underlying instrument, Bitcoin (see my attached chart below).

If Bitcoin, its derivative BITO, and the Miners continue to follow the price path implied by their near and intermediate-term technical setups, then Bitcoin-- and especially the Bitcoin Miners-- have still higher-- perhaps considerably higher-- upside potential from current levels, but probably not without some intense volatility along the way toward Bitcoin testing and taking out its November 2021 all-time high at 69,000.

Join me and our MPTrader members for our ongoing, frequent strategy discussions about Bitcoin and actionable, tradeable instruments to take advantage of what could very well be the advent of a new era considering the likelihood of the forthcoming SEC approval of a spot Bitcoin ETF that could attract huge capital to an altogether new asset class thoroughly embraced by BlackRock, Fidelity, ARK Investment Management (Cathie Wood), and 21Shares. In addition, as always, join us for our intraday strategy sessions about individual stocks, sector ETFs, macro indices, commodities, and precious metals as we conclude 2023 and enter into what figures to be an extremely challenging 2024...

Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 7-day Trial!

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