Bitcoin Hits Short-Term Target

This is an important development for a few reasons.

First, as detailed previously, the first push through 7,000 failed in part because the other major Cryptos didn’t fully participate in BTC’s rise.  That was especially apparent when Ethereum (ETH) failed to puncture the psychologically important 300 level.  This second push was more aggressive all around, as ETH muscled through 300, helping BTC hit 7,300. Short-term traders should have tight stops in place at this point.

The follow through has been lacking so far, which has kept the 2018 theme of lower highs in place. As noted in our August recap, this needs to change before any of these rallies can be trusted for longer than a few weeks.

But with any potential trend shift, we need to see small victories emerge first.   This was a necessary step, in other words.  Holding near 6,000 in August was, as well.

Thus, the next step from here would be seeing the ensuing pullback (whenever it commences) be shallower than the what we witnessed in August.  That sounds simple enough. But sometimes simple isn’t easy.