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Bitcoin crosses above 200D, invoking Rule #3 --> Buy Bitcoin above its 200D

Aug 9, 2021 • 2 Min Read
Author
Tom Lee
Tom Lee AC

STRATEGY: Rule #3 kicking in --> Buy Bitcoin --> $100K into YE

Bitcoin crosses above its 200D...
Bitcoin today crossed above its 200D moving average ($44,938), invoking Bitcoin Rule #3 --> Buy Bitcoin $BTC above its 200D moving average

- Bitcoin fell below its 200D on May 18th, 2021
- Recall, we "stepped aside" on Bitcoin at that date
- Bitcoin has since been range-traded between $30k-$40k

With Bitcoin crossing above its 200D, we think Bitcoin will rally strongly into YE.  This is consistent with our view that "everything rallies" into YE.

The video in this report is only accessible to members


RECAP: 5 rules of Bitcoin
Our 5 rules of Bitcoin are below.  The most known is #5, the "10 best days", or the rationale to HODL Bitcoin.  But Rule #3 is a biggie.

The video in this report is only accessible to members


As shown below, Bitcoin's forward performance is far stronger when it is trading above its 200D moving average:


>200D, 6M forward return    +193%
<200D, 6M forward return       +10%

You get the picture, Bitcoin is a network effect/network value asset, and also apparently aided by price momentum.

The video in this report is only accessible to members
STRATEGY: Buy Bitcoin or Buy Crypto equities The associated action for Rule #3 is simple.- go longWhy is this happening? This is not clear.  But Bitcoin is facing a legislative and regulatory assault from China and the USA, ...

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