The rise of Bitcoin could be indicating the next big market breakout

Bitcoin has been experiencing a lot of activity lately.

After the strong move earlier this week, it has been pulling back a bit, and the big question is whether that move was a false signal or a real indication of where we are headed next.

Bitcoin has been one of the best indicators of 'risk' in this market for years.

When there is a rise, it tells us that investors are willing to take risks, and that kind of sentiment often reflects in stocks.

My approach hasn't changed: I stick to defined risk trades, making calculated decisions instead of open bets.

If you are accumulating naked call options in this case, let's be careful: Bitcoin can move between 5% and 10% in an instant, and that's not the kind of environment where you want to have undefined risk hanging over your head.

This isn't just about trading Bitcoin (in fact, that's the exception, not the rule!). It's about what Bitcoin tells us about the appetite for risk and the bullish potential of the rest of the market.

If this rise is real, we could be seeing the first signal that the market is gearing up to continue rising.

I hope this helps.