Local Top on GBTC?
GBTC looking like it may be ready to pullback for a bit...
After a massive rally from below $11 to now over $23, GBTC looks like it might be ready to cool off for a bit here.
If you are not familiar GBTC is the bitcoin investment trust that tracks very closely to the price of bitcoin and is able to be traded and owned in a traditional brokerage account.
Including in self directed IRAs.
I decided I would sell some of my GBTC in my IRA today to go ahead and lock in some gains as well as take advantage of the spiking premium.
Here's the current chart:
(Source: https://stockcharts.com/h-sc/ui)
Lot of technicals looking overbought, but they can certainly stay that way for some time as we have already seen.
Notice that GBTC has gone from under $11 to over $23 in the same time frame that bitcoin hasn't quite doubled?
That has to do with the spiking premium I mentioned above.
The premium of GBTC has gone from about 7% to now up around 26% over this time period.
(Source: https://ycharts.com/companies/GBTC/discount_or_premium_to_nav)
So, not only did I catch the 90% move in BTC over this time, but I also got a nice 20% spike in premium in GBTC.
A nice boost to my bitcoin returns!
Overall, I think GBTC is going to go a lot higher than this over time, but I think this is as good of a time as any to lock some profits and see if things cool off a bit here.
Stay informed my friends.
-Doc
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I was thinking of the same thing today but didnt pull the trigger. I will see how things go tomorrow and I might take a third off the table. It was certainly hot and if BTC pulls back, GBTC tends to go down harder.
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Yea, I took about 30% off the table, so pretty similar line of thinking.
And yes it's that premium in there that fluctuates. That was one of the main reasons I pulled the trigger. That 26% is the highest it has been in some time.
I will have to watch it closely.
Do you think that BTC in general will have a pullback after nearing the ATH?
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Good question. I think it will have one around here yes, but will it be at $19k, $20k, $22k? I really can't say... Things are just so overheated currently it needs to cool off.
Yeah I wouldnt be surprised if we start to move back towards $15K at some point.
Get a selloff to clear some things out.
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Yep, I'd be pretty surprised if we go much below $15k at this point though.
Can you trade within your IRA without the trades being tax events?
Yep. It's very nice.
The plan for retirement in wealth is this: buy as much Bitcoin as you can right now. Sell your entire stack in Q4 2021. Buy back in Q4 2022. Sell everything in Q4 2025. Repeat until billionaire.
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wow what a climb !!
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