Another Bitcoin Trap Is Set

[Trading With Larry Benedict]( Managing Editor's Note: Cryptocurrencies have handed traders many wins in recent years… That’s why Larry has worked hard to trade Bitcoin using options… And our latest 100% win shows the strength of his strategy. Yet if you want to explore crypto further, we want to put another opportunity on your radar… Our fellow editor Jeff Brown is about to unveil a tool he’s developed to take advantage of short-term profit windows in the crypto world. His tool hunts for profits in cryptos many of us have never heard about. But he’s been able to turn $5,000 into $6,970 in just 3 days using this method. And that’s just one example… Even better, he’ll explain how it works at an upcoming forum he’s hosting next week on September 25. If you’d like to learn more – and potentially take part in his next trade – be sure to [check out the details here](. Then be sure to read about Bitcoin’s latest moves below… Another Bitcoin Trap Is Set By Larry Benedict, editor, Trading With Larry Benedict The Federal Reserve’s new interest rate-cutting cycle is here. As a result, investors have pushed asset prices higher over the past week. Their hope is that rate cuts spark higher prices still. But don’t get faked out heading into a key event like a Fed meeting. I’ve been trading for over 40 years. That includes a streak of 20 winning years in a row during my hedge fund days. And in that time, I’ve seen just about every type of trick the market plays to draw you in. That’s why I’m eyeing Bitcoin’s latest rally with suspicion. It’s a pattern I’ve warned you about before. And the Bitcoin trap looks primed to spring shut once again… Recommended Link [Jeff’s Powerful AI Helped Him Deliver Nearly a Dozen Winners During the 2022 Crypto Winter – Now He’s Bringing It Back]( [image]( Jeff first launched the Perceptron in 2022 – during a brutal crypto winter. Bitcoin was in the middle of a 70% tailspin… Yet Jeff delivered nearly a dozen winning trade recommendations during that downturn. Obviously not every trade was a winner, but anybody who followed all his picks could have actually made money. On Wednesday, September 25th at 8 pm (ET), he’s bringing back the Perceptron, and giving you the name of his top buy. [Register Here]( -- A Failed Crossover Last month, I warned you about Bitcoin’s frequent [fake-out moves](. The world’s largest cryptocurrency has a history of crossing key moving averages… then failing. Yet that can spell prime trading opportunities if you know what to look for. You can see that in the chart below: [chart] ([Click here to expand image]( Since May, Bitcoin has tried to cross above the 50-day moving average (MA – blue line) on three occasions. The attempts at “A” and “B” ultimately failed. Bitcoin crossed back below the 50-day MA, which led to a quick pullback in price. Then another failed crossover happened at “C.” Following that reversal, Opportunistic Trader subscribers bagged a 100% gain by buying put options in the ProShares Bitcoin Strategy ETF (BITO) that tracks Bitcoin. Put options gain in value if the price of the underlying security declines. And now the chart points to another opportunity in the making… Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Testing a Key Level Stocks and cryptocurrencies like Bitcoin have rallied into the Fed’s highly anticipated meeting this week. But it’s creating a familiar chart pattern… Take a look at the Bitcoin chart below: [chart] ([Click here to expand image]( After the latest failed crossover at “C,” Bitcoin fell toward the $53,000 area and found price support at that level. At the same time, a positive divergence developed with the Relative Strength Index (RSI), shown with the dashed trendline. The RSI made a higher low as Bitcoin tested the $53,000 level. That sparked a rally… But now, it could be setting up another failed crossover. Bitcoin rallied back to the 50-day MA at “D.” There, it crossed above – and reversed lower on the same day. The rally has brought the RSI to resistance around the 50 level (the shaded box). That means we could see price momentum weaken again. History doesn’t necessarily have to repeat. But given Bitcoin’s past failed crossovers, I’m watching this test of the 50-day MA carefully. Regards, Larry Benedict Editor, Trading With Larry Benedict Recommended Link [Next AI Shock: November 19th?]( [image]( Thanks in part to [Bill Gates and his Stargate project]( we could have an AI market shock as soon as November 19th. Most people don't realize we’re moments away from a seismic shift. If you want a chance to end up on the winning side of this shift… “Advance civilization and change the course of human history.” [Click here now and I’ll give you all the details.]( -- [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](