By Andrew Keene
This post 5 Reasons Why I think Bitcoin Will Hit $100,000 appeared first on Daily Reckoning.
Hi, I’m trader Andrew Keene.
I’m filling in for Nilus this weekend…
Usually, I deliver my readers fast-paced trading advice. I seek out “alpha” — market-beating returns — like a cold-blooded mako shark. That’s why my friends on Wall Street call me “The Alpha Shark.”
I’ll be honest — usually I’m NOT a buy and hold investor.
But because I’ve just released my brand-new bootcamp (there are only 850 spots left today.)
For the entirety of my trading career I have tried to avoid buying and holding. Every time I put on a trade I do so with a clear exit plan in mind. I NEVER go into positions with the intention to hold them for an undetermined amount of time.
There’s one market and one investment that has made me completely change my attitude about “buy and hold” as a trading strategy…
That’s the bitcoin market.
I know, bitcoin has come down a lot this past week (it’s since stabilized). But to me, that’s perfectly fine. I’m happy about it, in fact. You should be too. It just gives you the opportunity to buy cheaper before bitcoin rises again.
And it will rise again…
My trading career was built on my ability to spot and follow trends. While some traders can find success trading counter-trend setups, I have always focused on riding momentum and chasing prevailing market trends.
I keep all of this in mind when considering an exit plan for my bitcoin position. And because I see no major reversals in the trend I cannot develop a solid exit plan.
The move higher in bitcoin is one of the most amazing things I have seen in my career.
Every major pullback last year saw buying interest. And we saw new highs minted on a regular basis.
This is the type of trend that I cannot step away from. I know about the pullback. But upside momentum is unlike anything we’ve ever seen before. So for now, I need to hold my position as long as this momentum lasts.
You’ve heard plenty of people say “It’s too late to get into bitcoin.” Odds are those people don’t have a position in bitcoin nor have they ever.
I understand why some people feel this way. Looking at bitcoin’s chart over the past year or so can make someone feel skeptical about further upside. When I look at that chart however, I can only think of reasons I think bitcoin will move higher.
With that in mind I want to share five of the biggest reasons why I think bitcoin still has massive potential upside and could go to $100,000 — 10x higher than today…
Bitcoin $100k Reason #1:
There’s Plenty of Money on the Sidelines.
When stock market bears talk about the reasons they think the market is heading lower they often cite a lack of “new” capital to be invested.
This argument assumes that most investors are fully invested in the market and have no more …read more
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