Chart of the Week: ProShares Bitcoin Strategy ETF
It’s time for our chart of the week, and this week we’re going to be focused in on the ProShares Bitcoin Strategy ETF – BITO is the symbol – and we’re gonna be taking a look at couple of other ETFs that are very similar.
This ETF is looking bullish after a modest pullback
So let’s take a look at the chart here. What I see here is a nice formation of a cup and handle pattern. What does that look like? There’s the cup there and there’s the handle there. We are now breaking through the downtrend line as we speak. It looks like it went right up to the downtrend line but it’ll be breaking above there momentarily. We also see a nice little ball-shaped pattern here on the relative strength.
What are we looking at here? We’re looking at an ETF that soared at the end of January, from about $15-16 up to about $30 – it more than doubled. And of course Bitcoin was up strongly during that period.
A modest pullback on lower volume. You can can see how the volume has tapered – nothing close to what we had back at the end of February and early March when the ETF was going up. We could actually look at this area as some really good support. Let’s take a look at this area over here from here all the way to there as good support. You can see that the ETF came back down and tested that support – nearly filled the gap. There’s lots of gaps in the BITO because of the pricing structure of this ETF. But pretty much, you can see the patterns are playing out over here.
We’ve had a small series of lower highs, but now it’s made a series of higher lows and higher highs. Once we break above that $30 on BITO, I think it’s going to take off, probably up to that $45-50 area.
Other ETFs are also looking strong
Let’s take a look at another ETF similar to BITO. And that would be IBIT. And again, this is another one that built a nice little ball-shaped pattern right over here. And now it’s breaking out over the recent resistance here. Once it gets above this $44 level, I think it’s got some move up to about $60.
Bitcoin has started to rally again, it’s back above $70,000 per coin. All the stocks that have been surrounding this, the Miners, the Cleansparks, Marathon. And then these ETFs as well have been super strong and starting to come back strong. Coinbase is another one – we covered that a couple of months ago. This is another name you might want to take a look at.
For now, we like the BITO ETF and some of the others ones, too. Again, IBIT is one to take a look at. There’s another one as well – the FBTC, which is the Fidelity Wise Origin Bitcoin Fund. All of these charts look exactly the same – they’re identical. So you just choose which one you want and go for it.
That’s our chart of the week – it’s Bitcoin.
Don’t miss a single one of Bob’s charts! Get the Chart of the Week in your inbox every week!
