This post is for education purposes only and should not be interpreted as a trade recommendation.
Stocks are coming off their worst month in over a year, but cryptocurrencies like Bitcoin have been on the rise. Now some bulls are starting to look for a breakout.
The CME Bitcoin Real-Time Index ($BRTI) rose 3.58 percent in February, while the Dow Jones Industrial Average and S&P 500 Index both shed about 4 percent. That contrasted sharply with January, when the crypto benchmark cratered 26 percent.
Some of TradeStation’s indicators are also starting to flash. For instance $BRTI’s 20-day moving average rose through its 30-day moving average yesterday for the first since time in almost five months. Other occasions that occurred, like in August and October of 2017, were followed by at least several weeks of gains.
James Putra, resident crypto expert for TradeStation Technologies, sees the potential for a breakout through resistance as the index challenges a falling trendline and its 50-day moving average. Even more interestingly, there could be potential for bullish catalysts in coming weeks.
“Tax refunds and Wall Street bonuses are starting to come in,” Putra said. “People are going to start buying.”
Putra also points to long waiting lists for access to crypto markets as an indication of broad demand for the space. On top of that established Wall Street firm Goldman Sachs (GS) made a foray earlier this week when its Circle Internet Financial acquired digital-token exchange Poloniex.