NFTRH+; Here’s Why I Bought this One

I don’t want to give away the name of the ETF in the post title, but per the trade log…

“Adding the imperfect Bitcoin tracker GBTC here for its chart, which has filled a gap, pulled back to test the SMA 200 and is in an interesting pattern. A reminder that I understand and care about Bitcoin less than your grandmother does.”

Please feel free to completely disregard this update, but for those who have interest here is the technical rationale for my buy (not including the charts of BTC/USD we’ve been reviewing in NFTRH showing a support test).

GBTC’s daily chart shows something of an Inverted Head & Shoulders pattern that has dropped to fill a gap (always a good thing to get rid of those), has tested the SMA 200 (does not mean it can’t test it again) and is at a logical point to start forming a higher low. Also, the SMA 50 and SMA 200 may each be starting fledgling up trends. That’s still inconclusive, but so far it’s looking good.

The weekly chart shows that the pullback has broken below the neckline of the pattern, which I don’t see as a show stopper, although I am aware that the daily chart above shows a couple gaps still open lower. So if the SMA 200 is lost I’ll very likely end this trade abruptly. However, with that tolerance in mind I think the risk vs. reward is good here to take a shot. The theoretical target is noted.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.