A member asked in the Message Hub:
- Why favor Uranium Miners (ura) instead of Bitcoin (btcusd)?
- Another point was that Bitcoin was also doing well versus the Technology Sector (xlk)
So lets dive in the evidence.
First chart up is Technology Sector (xlk) vs Bitcoin (btcusd).
- Still in coiling pattern
- Bias currently slightly favors Bitcoin
- No clear continuation breakdown yet
Second chart is Uranium Miners (ura) vs Bitcoin (btcusd).
- Very similar to Technology Sector (xlk) vs Bitcoin (btcusd)
- No clear continuation breakdown yet
- On both those ratio charts, the price is sandwiched between horizontal walls
Note, as Bitcoin is the more volatile instrument, it is primarily carving out those ratio charts (thick black line is Bitcoin inverted).
So now lets look at Uranium Miners (ura) itself.
- It has a breakout on its own chart merit
- It is also above its 36 month sma vs gold
- It is also above its 36 month sma vs spx
Final chart is Bitcoin itself.
- Has done well off its lows
- It still hasn’t convincingly broken out versus spx (middle pane)
- Still below a “wall” (previous support turned resistance) vs gold (bottom pane)
If there is an epic move for Bitcoin in the cards to lets say 160K…
- Because we use proper risk and money management, we have no fomo
- We can get in at a higher price point, let the weight of evidence clearly show the probabilities to where the next multi year move will be
- Also, enter if the risk versus reward profile is adequate
- See this post https://northstarbadcharts.com/revisiting-hunting-the-bitcoin-whale-btc-3-charts/
Hopefully this helps shed light on the monthly defined evidence.
$btcusd $ura
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