📈 Bitcoin Names Tired?

This signal is important.

Bitcoin Needs a Rest?

Bitcoin has been on fire since the election last Tuesday. It is up 12% this week alone.

As a result, we have been playing Bitcoin names such as MSTR and COIN to take full advantage of the strenght.

However there is one signal that developed yesterday that is slightly concerning that I want to walk through so that you are aware of what is happening.

Bitcoin Names Decoupling

Earlier in the week (and even up until yesterday morning), we saw Bitcoin names (MSTR, COIN) were outperforming Bitcoin. When Bitcoin would rise, MSTR and COIN would rise by a much greater amount. It suggested strength.

See below for an example. You can see that while Bitcoin is just making new highs, MSTR is far above highs. That’s what you want to see.

However this changed yesterday. For example, take a look just an hour later at how Bitcoin is making a higher high, yet MSTR is near lows.

This is what I refer to as decoupling between Bitcoin and the Bitcoin names. When we see this divergence, it means that if Bitcoin shows any weakness (which it did end of day yesterday), we have the potential to see names like MSTR and COIN come in sharply.

This is worth paying attention to as you trade today, as these names will be extremely active.

I walk through how I am taking advantage of this in the video below: