Tag: Bitcoin Investing

Has Bitcoin Reached Its Peak?

Posted on by Chris Vermeulen

We hope you enjoyed the brief holiday break… it seems Bitcoin has been busy while the markets have been resting! Bitcoin enthusiasts are adamant that the price rally has just started a parabolic move higher. From a technical standpoint, this current rally certainly appears to have gone parabolic. As any trader already understands, what goes up may eventually come crashing downward.

My research team and I believe failure at the current highs would represent a clear technical divergence pattern between price and the RSI indicator. Additionally, the current rally that started on December 20 consists of a $10,850 rally phase. The previous rally from October 20 to December 2 consisted of a $9,200 rally phase. We believe this current rally phase from December 11 could be a Wave 5 rally (almost equal to the Wave 3 rally range). If our researchers are correct, this final rally phase could come crashing downward after reaching these peak levels above $28,000.

This 4 Hour Bitcoin chart highlights the incredible price rally that has taken place over the past 16+ days – a rally of over $10,000. It also highlights two very clear price rally phases – creating an A-B-C price wave pattern.

Bitcoin

This Daily Bitcoin chart highlights the two, almost identical in size, which has created a price peak above $28,000. It also highlights the technical divergence between price and the RSI indicator in the lower pane. Continue reading "Has Bitcoin Reached Its Peak?" →

Is Bitcoin In Trouble After $3K Drop

Posted on by Matt Thalman

The Thanksgiving Holiday of 2017 was right around the time when most casual retail investors first began to hear about Bitcoin and cryptocurrencies. What ensued is why we all still talk about Bitcoin and what most believe permanently put Bitcoin on the map.

The price moves from slightly before Thanksgiving 2017 until the end of the year in 2017, where what Wall Street dreams are made of. Bitcoin went from $5,000 a coin to $20,000 a coin in just a few weeks. Early Bitcoin adopters were made millionaires in only a few weeks.

After a stellar 2017, Bitcoin had a rough 2018 when the price fell more than 80%, from above the $20,000 mark to down around $4,000. Even after the recent $3,000 drop Bitcoin has experienced, the crypto is still doing well for 2019. But, is the latest drop a signal of what’s to come, or a buying opportunity?

The Bitcoin bulls will tell you that Bitcoin has a history of big rebounds after big drops. While I fully agree with these statements, the problem is that no one knows when the big drop is over. Furthermore, most of the past declines came after the coin was simply overvalued, or a big catalyst had and gone. The recent drop followed a move from the Chinese Government increased its cracked down on the cryptocurrency industry. Continue reading "Is Bitcoin In Trouble After $3K Drop" →

Is Bitcoin The Place To Be In A Volatile Market

Posted on by Matt Thalman

Many investors have called Bitcoin the digital version of gold. Obviously, we know it is in a lot of ways the digital version of cash, but the comparison to gold would potentially mean that if the stock market continues to be volatile or potentially crash, then Bitcoin would be an excellent place to be invested.

However, while someday Bitcoin may genuinely be the digital version of gold, it is not yet trading as such, I’ll explain in a moment, and therefore is not likely the best place to be parking your cash while the stock markets decide which direction it wants to go.

A simple chart of with the price of Gold and the price of Bitcoin overlaid on top of each other, clearly shows the two investments have not moved side-by-side over the past year, let alone the past month when the stock has been flipping from trading lower by 1% to trading higher by the same amount every few days. Since August 8th, 2018 Bitcoin and Gold have moved in the same direction at the same time just 51% of the time. Not really movements or assets that I would call correlated. Although, since May 8th, 2019, around the time we started seeing an uptick in volatility in the stock market, the two assets have been moving in sync 58%. Still not a sign of strong correlation, but better than before and a sign that someday, Bitcoin and Gold may move much closer together.

At this time, though there are just too many unknowns with the future of Bitcoin from both a legal standpoint and an adoption standpoint for it to trade hand-in-hand with Gold.

First and foremost, Bitcoin is illegal in a handful of countries around the world. China is the largest anti-crypto country, but the list also includes Algeria, Egypt, Morocco, Bolivia, Colombia, Ecuador, Saudi Arabia, Iran, Bangladesh, Nepal, Pakistan, Cambodia, and Indonesia. Continue reading "Is Bitcoin The Place To Be In A Volatile Market" →

Bitcoin Duplicates Gold Chart

Posted on by Aibek Burabayev

“It's not gods who make pots” as investors move the market, pushing the buttons and sending the orders to the marketplace. It’s clear that they tend to behave one way or another, and that’s why patterns exist and appear from time to time as “there is no new thing under the sun.” It doesn’t matter what the instrument is it, let it be a very old commodity or a new digital asset, it is people who “worship” it, make it valuable and move the price of it.

Bitcoin caught the hype again recently after a disastrous 2018 when it was just falling all way down. I would like to share with you an interesting similarity in the chart structure of “perpetual” gold and Bitcoin aka “new gold” to find out if this rally is a part of something bigger.

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Let’s start from the monthly gold chart as it is a model for the Bitcoin chart. Continue reading "Bitcoin Duplicates Gold Chart" →

Will 2019 Be A Better Year For Bitcoin?

Posted on by Matt Thalman

In 2017 Bitcoin became a household name as the price went from below $1,000 per coin at the start of the year to well over $19,000 as the year came to an end. In 2018, the price of the most well-known cryptocurrency fell from its lofty heights to close the year below $4,000 per coin.

As we roll into 2019, some cryptocurrency experts are predicting Bitcoin to break the 2017 record high and fulfill its destiny of going as high as $1,000,000 per coin by 2020. Other more modest expectations have Bitcoin at around the $50,000 range by year end 2019. But the mass consensus of Bitcoin experts has the crypto ending the year in that $20,000 range.

I personally still believe that is way, way, way too high, and I’ll go even as far as saying Bitcoin will end 2019 lower than where it starts the year.

There are two reasons I believe Bitcoin will not perform well in the coming year. Continue reading "Will 2019 Be A Better Year For Bitcoin?" →