Over the past hour and a half Bitcoin has abruptly broken out above the resistance line established in a post I wrote two days ago. (See updated chart below). The move thus far amounted to lusty vertical 800 point rise. But the whole story is not yet written. Bitcoin MUST exceed the prior high price of 29,380 established on March 24th to be a contender for a new high and show it really means business. We are not there yet as of this writing.

A breakout to a new high is what we call “impulsive” and implies much higher prices in the future. A failure to exceed the prior high however will see Bitcoin go limp and deflate. So be guarded before jumping in with long positions (other than the usual speculative trading as this opportunity unfolds). No doubt some in this room were already positioned and ready for the inevitable breakout and have made some decent money already today. Take care not to lose it though should all the gains retrace in the next few hours!

Note: The linked chart is BTCUSD and this is being traded as a currency.

Just for the record, I am planning my next trade as a short position to be entered fairly soon with an expectation Bitcoin will retrace to below 20,000 on the coming cycle. Call me a fool if you like. But that is what the chart is telling me. If I am not dreaming in Technocolor or hallucinating from too many Latte’s then I could do very well as price declines over 9000 points from current highs. This is not a recommendation of course. I am not a licensed analyst. So take care and do your own Due Dilligence before you decide to follow me into the abyss! I reserve the right to change my mind if the chart changes. (EG: if price blows through 29,380 for example) That’s how it works.