Money Flows Out Of Gold Into Bitcoin, Next Bitcoin Stop $100,000, Aggressive Buying In Tesla

To gain an edge, this is what you need to know today.

Trump Trade Rolls On 

Please click here for an enlarged chart of Bitcoin (CRYPTO: BTC).

Note the following:

• The Arora Report’s call on bitcoin has proven spot on.   On Friday, we wrote:

Bitcoin (BTC.USD) is being bought on hope that whales will take advantage of low liquidity during the weekend to run bitcoin up over $80,000.

• The chart shows that bitcoin has moved to $81,866 as of this writing.
• RSI on the chart shows that bitcoin is overbought.  However, in The Arora Report analysis, the RSI pattern shown on the chart is setting up for a higher bitcoin price, perhaps after a shallow pullback.  The next target for bitcoin is $100,000.
• The chart shows the support zone for bitcoin.
• The chart shows that bitcoin broke out on Trump’s election.  Trump has said he wants to be the crypto president.  As full disclosure, The Arora Report also gave a signal on Trump’s election to buy bitcoin via ETF iShares Bitcoin Trust ETF (NASDAQ:IBIT).  Bitcoin is also in The Arora Report’s ZYX Allocation Model Portfolio.
• Money is flowing out of gold and other commodities, such as oil, and into cryptos.  For the first time iShares Bitcoin Trust (IBIT) has become bigger than iShares Gold Trust (NYSE:IAU).  On Trump’s election, a record $1.4B money inflow took place in IBIT.
• When looking at gold and bitcoin, investors need to understand that the gold market is not being manipulated, while bitcoin can easily be manipulated.  Anytime an asset can be easily manipulated, it can be driven higher than you would think.
• Other crypto tokens are also moving. Dogecoin, created as a joke, has gone up 40% since Friday.  The meme crowd is going all in on smaller coins.
• Sentiment has reached the extreme zone.  When sentiment reaches extreme positive, it is traditionally a sell signal.  However, sentiment is not a precise timing signal.  Also, this time is different because of the momentum from Trump’s election.  The Arora Report’s sentiment indicator is a 360 degree view and is very comprehensive.  Investors looking for a short cut may at this time look at bitcoin as an indication of sentiment.
• Investors need to understand that this is as pure of a momentum market as it gets.  Momentum is …

Full story available on Benzinga.com