Back in February we bought a short-term and long term call in Bitcoin (BITO). The short term call expired in March for a 615.83% profit. The remaining longer term call, which expires on Jun 21st, had been as high as +440% in early March, but gave well over half of that back in a Wave (4) retracement, triggering a trailing stop exit when that Best Return was cut in half. As of Monday, Bitcoin is back on a Buy implying Wave (4) is over (see chart below) and the Jun 21st $25C has recovered all the way back to +108% today. In other words, the run-up has been so strong that these Jun calls survived an entire cycle of Buy-Sell-Buy and is still in triple digit return territory. There is a chance BTC will see $100K before the end of summer. From Feb 12, 2024 Bitcoin Buy Signal (BITO Calls Mar & Jun) With ample profits in hand from either or both of these calls from earlier this year and in conjunction with Bitcoin's EW structure, i.e., finishing a Wave (5) about 20% higher, or more, in the weeks-to-months ahead. We're going back in. Bitcoin Fibonacci Target Zone: $86K-105K The implication is that Wave (5) has begun and a break above $72,000 will confirm a run to between $86,000 and $105,000. Time for Sep BITO calls: Buy 1/2 position on break above $70K, 1/2 position on break above $72K (to protect against Wave (4) extending). Use a break below $63K as a hard stop. ----------- BITO Sep Calls Recommended: BITO Sep 20 $30C Target BITO > mid-$30's BITO $30C > 6.00 Alternate Stops: 50% Trailing on Calls (Best Return from Entry) or Bitcoin price drop below $63,000 (about 10%)
