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Global Arena Holding Inc (OTCMKTS:GAHC): Here's How To Play It

Written by

Chris Sandburg

Published on

June 23, 2017

In this piece, we are going to return to a company that we last looked at back at the beginning of June, a cryptocurrency company called Global Arena Holding Inc (OTCMKTS:GAHC).We first covered Global Arena in mid April, when it was trading in and around $0.01 a share. Early June, this had risen to highs of $0.063 a share, logging a 450% gain for readers that agreed with our thesis. Right now, the company trades for $0.028 a share, around 55% off highs.In the coverage linked to above, we concluded that the run we had seen was primarily down to the underlying run we had seen in bitcoin. Between January and early June, 2017, bitcoin ran from a little over $1100 to just shy of $3000 apiece, appreciating in value by close to 200%. It took mainstream media a couple of months to get on board with the depreciation, but by April or May, all the big names were covering the digital currency's meteoric rise, and secondary money got in on the run.A large number of people wanted to take advantage of the appreciation but didn't want to buy the underlying asset. This translated to the concurrent appreciation of many public company stocks that laid claim to an operational link to bitcoin – one of which was the above discussed Global Arena.We covered quite a few of these companies across the bullish period: BITCOIN SERVICES I COM USD0.001 (OTCMKTS:BTSC), BTCS Inc(OTCMKTS:BTCS) and FIRST BITCOIN CAP COM NPV(OTCMKTS:BITCF) to name just three.So, why are we coming back to this one now?Well, take a look at the conclusion from our latest coverage of Global Arena:

"If and when the market corrects, it’s likely going to quickly find a bottom before returning to the upside momentum… we see two ways of playing this. Booking profits and waiting for a correction to reenter may be a smart move. Alternatively, ride out the stock for a couple more weeks and revert to step one."

Now take a look at the chart below, illustrating price action in BTCUSD across the last eight weeks or so.As the chart shows, our last coverage was pretty much at or around highs, maybe a week or so off. We then saw a correction which brought the price down to lows in around $2150; a correction that has now all but bottomed out and we are seeing a return to the overarching bullish momentum in bitcoin.As is illustrated in the GAHC chart above, however, while we have seen the correction, we are yet to see a return to the upside. It looks as though the same pattern is playing out.Put another way, bitcoin is rising again, but as yet, major markets haven't priced in the return to the upside. Once mainstream media catches on to the return to the upside run, individuals will once again seek exposure to publicly traded bitcoin companies, and – with Global Arena being one we have already seen as benefiting from this phenomenon – we expect the company to at least close the gap on the decline from recent highs, and beyond that, track the price of underlying bitcoin as it continues on its upside march.Notice we haven't really talked about Global Arena as a company here, and there is a reason for that – it doesn't matter right now. Perhaps longer term, the viability of these sorts of technology companies in the cryptocurrency space will come under scrutiny and – therefore – as a long-term play, this isn't a realistic option.As a short-term exposure to the run in the digital currency space, however, and one that offers said exposure type without having to buy and store bitcoin, this is a nice trade.Know the whole story: take a look at our previous GAHC coverage here.We will be updating our subscribers as soon as we know more. For the latest updates on GAHC, sign up below!