📈 Powell Bullish on Bitcoin?

He said this yesterday that is drawing institutional attention...

Powell Chimes in on Bitcoin

Yesterday, Fed Chair Powell spoke. He mentioned Bitcoin, calling it “…like gold, just virtual and digital.”

This is a massive statement from Powell. It tells you that he sees value in Bitcoin and cryptocurrencies, and that there is possibility for the Federal Reserve to use Bitcoin in some capacity.

It also signals that he wants to remain aligned with the incoming administration, which has been very supportive of Bitcoin and cryptocurrencies in general.

These comments caused Bitcoin and related stocks to rocket towards the end of the trading day yesterday.

You can see that these comments caused Bitcoin to break the pennant it has been trading in for the last few weeks. This is bullish.

Stocks to Watch

The top name I am watching as a result of this is Microstrategy ($MSTR).

You can see the move the stock made right at 1:45 when Powell made the comments about Bitcoin. Clearly this name is responding to the news, which makes sense as the company owns a ton of Bitcoin.

The image above tells you everything you need to know about trading the stock. Peak VWAP has been a consistent rejection point for MSTR.

If we can get over this, we have room for another big move. But we need to get over.

Use this as your guide when you trade the name today.

For more analysis on Bitcoin, MSTR, and Powell’s comments, watch this video: