Williams: Bitcoin and BTSC nearly back to buying territory

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Jeff Williams, lead trader at PennyPro.com, says that bitcoin-related stocks are worth watching again, because they crossed their 50-day moving average and are now falling back. Specifically, Williams says that bitcoin has pulled back on strong volume, and he is looking for resistance on the cryptocurrency between $5,800 and the $6,000 range; if he sees that, followed by a move back up, he will be looking to play Bitcoin Services Inc. (BTSC). He is expecting BTSC to follow bitcoin itself — which may move sideways for a few days after the big move of the last few days — and if he sees buyers come in, he will come along for the ride. He said he would buy Bitcoin Services if it holds and bounces off 7 cents per share, expecting a 20 percent maximum profit on the upside, but setting his stops at .67 cents per share.

Williams’ position on bitcoin now represents a change from earlier in the month, when he felt he had missed a strong move to the upside. At that point, he warned investors against chasing the trade, telling them to wait for the pullback that has now occurred.

Why Jeff Williams was waiting on bitcoin as it soared earlier this month

 #-#-#Jeff Williams is the lead trader of PennyPro.com. He is a short-term trader of stocks under $5 a share. At the time this interview was recorded on Nov. 12, he had no shares options or open orders in BTSG or any other bitcoin-related security, though he was planning to watch and trade BTSG as described in this conversation. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.

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