Posted November 24, 2021
By Jonathan Rodriguez
Bitcoin Alert! Why This Is a “Make or Break” Week for the Crypto
I'm J-Rod and Welcome to Stocks That Rock
Each week I turn up the volume on a breakout stock or crypto that will rock your retirement account.
As you probably know...
Bitcoin has been all the rage in the second half of 2021...
Thanks to the arrival of the first bitcoin futures ETF in October.
And with a gain of 97% on the year as I speak…
The bitcoin bulls have a lot to be thankful for…
But this week is the coin's most important one of the year.
It's make or break for the world's largest cryptocurrency.
In today's video, I'll reveal why this week is such a big deal… and where I think bitcoin goes from here!
So first off, why is this week so important for bitcoin?
Well, the crypto is sitting at a major inflection point on its weekly chart.
As I pointed out in a video a few months ago...
Bitcoin broke out of a lengthy downtrend and pushed to a new all-time high.
But the coin rolled over last week and broke below that previous resistance around $60,000.
And depending on whether bitcoin can re-establish support at this level...
We could be looking at a big drop, or a huge pop...
My bear case for Bitcoin is a drop of 20% to its 50-week moving average if can't hold $60,000, which on a price basis is about $48,000.
But if the coin can retake $60,000... my bull case for bitcoin is $90,000.
That's the crypto's $30,000 range added to the top of the $60,000 breakout point.
And ultimately, an upside for you of 50% from where it's trading right now.
Now seeing and hearing this...
You're either terrified or thrilled about the chart I've just shown you.
But here's why I think bitcoin's breaking for the bulls
For starters, Q4 is historically great for bitcoin.
Since 2015, the crypto averaged a 15% plus pop in October, November, December, respectively.
By comparison... over the same period, the S&P 500 hasn't mustered a double-digit or even a high single digit gain in any of these months.
And the end of November is typically very strong for bitcoin...
Over the last six years, bitcoin has seen a roughly 20% pop on average in the last week of the month.
And best of all...
In December, bitcoin ended in the green in 4 of the last 6 years.
In fact, in each of those four years...
Bitcoin popped more than 20%.
How did stocks fare, you ask?
As you can see, the S&P 500 came nowhere close to catching up to bitcoin over the same period.
Now, as I pointed out earlier...
There is a chance that we could see a sustained breakdown in the coin...
But from a downside perspective, 50-WMA has provided strong support to bitcoin all year long.
And with many retail investors just getting into crypto for the first time now...
I'd expect a slide to the 50 to be short-lived and for us to see a rocket-like rebound.
In fact, I'd be more concerned with missing out on the upside than being a little bit early to bitcoin... if you're adding to/or taking on a new position.
So to recap, this is a big decision week for bitcoin...
But given the coin's historical super-strength in the last few months of the year...
I think bitcoin tilts in favor of the bulls and closes out the year strong. Likely lifting up all the crypto boats along with it.
So if you haven't already taken a position, now would be a very good time.
Thanks so much for watching this week.
If you dig the content, as always...
Please hit the like button and subscribe to the Rich Retirement YouTube channel... so that you never miss out on my videos.
And if you've got a question or comment, leave a comment below this video or shoot me an email at AskJRod@StPaulResearch.com.
I'd love to hear from you!
Thanks again for watching this video.
On this special Thanksgiving week...
I'm so thankful for you as a viewer.
And for the opportunity to help you live a rich retirement teaching you about trading with breakout stocks and cryptos.
So to you and yours, happy Thanksgiving!
And for Rich Retirement TV, I'm J-Rod... and I'll see you next time.
Senior Analyst, Rich Retirement Letter