Here’s my take on $IBIT $MSTR and $COIN – February 26, 2024
This is Dan with FITZ IN FIVE. I want to talk about Bitcoin, the IBIT ( NASDAQ: IBIT ), MicroStrategy Inc. ( NASDAQ: MSTR ), and Coinbase ( NASDAQ: COIN ).
I’ve got a few things going on here today. First of all, Grayscale Bitcoin Trust ( NYSEARCA: GBTC ). I don’t know how they’re doing because I think the ETFs, or I thought anyway that they’d really have to hurt Grayscale ( NYSEARCA: GBTC ). Maybe they have, but I don’t see it on the chart, so this is working really well.
The last time I looked at Bitcoin a while ago it was in the mid-50s, maybe even a little bit higher than that. That got me looking at my positions, I don’t own any of this, I used to a long time ago. To be candid, I’m not even sure if I made money on it, I probably didn’t. I’ve actually got a pretty sizable position in Bitcoin, in the crypto itself over at Coinbase ( NASDAQ: COIN ), which I’ll get to in just a sec.
I’m trading all this other stuff like I actually have a really big position in IBIT ( NASDAQ: IBIT ), that’s in my trading account. I’m totally looking at it differently than my Bitcoin position, for me this is just a chart trade. I like the way this is trading. I like the way Coinbase ( NASDAQ: COIN ) is trading. And then also, MicroStrategy ( NASDAQ: MSTR ).
I want to go through these real quick. First of all, what’s happening with all of these? They’re all acting the same way, Now, I’m stating the obvious except to the most casual observer here, but it’s because Bitcoin is going up and these are all levered to Bitcoin.
When you see something like this; when you see a lot of stocks that are related to each other moving in the same direction. This should give you more confidence in holding a trade because what I mean is, there’s not one or two institutions buying a particular stock because they have an idea or they want to build a position. This is the bevy of institutions. This is the aggregate of institutions deciding that they want to be long a particular theme.
In this case, it’s Bitcoin in particular. I don’t think Saylor owns any Ethereum but he owns a ton of Bitcoin. So when I see this, do you know what, I want to be long the world, I want to be long it all. It all starts, truly, with Bitcoin, with the underlying itself. And so what we did today was, we’ve had MicroStrategy ( NASDAQ: MSTR ) on the list here for a while.
I’ve been in and out of it, as you can see here, we had a really nice trade over here. I just decided today that it’s time to get back in, I like the way this is trading. We put this back on the Active Trade List as well. We’re up just about 5 percent, when you look at the almost 16 percent gain today, that doesn’t seem like much.
But the thing is, I’m trading money for certainty for risk. I like the way this stock traded today. I think it ultimately goes higher, but it is levered to Bitcoin so that’s really what matters. But when I look at this on a weekly time frame that’s working. When I look at Coinbase ( NASDAQ: COIN ), this is, kind of, a classic head and shoulder pattern.
We could say it’s a deformed head and shoulder, right? You could say that this is a shoulder as well, it’s got the talent to stand on its head. It’s got a left shoulder and two right shoulders Or we can just say, do you know what, the stinking thing is moving higher in a rising channel. The stock is blowing out the top now and so this is another one that you want to be long.
Again, if you look at MicroStrategy ( NASDAQ: MSTR ), you look at Coinbase ( NASDAQ: COIN ), and they are all doing the same thing. You don’t have to be long all of them just because I am. But when you see all this stuff going it’s like the world is your oyster, just buy something. Just make sure you’ve got good stops.
I keep stops on all my trades, and on our open positions, you can see what they are, I’m not going to go through these. On our open positions, we have stops on every single thing, we know just what we’re risking.
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