Bitcoin in freefall, where will it land?
The digital asset continues to tumble, so this top chartist looks for recovery potential.
27th November 2019 08:32
by Alistair Strang from Trends and Targets
The digital asset continues to tumble, so this top chartist looks for recovery potential.
When we last reviewed bitcoin, a fairly miserable outlook Big Picture for its future was given, one it successfully lived down to.
Unfortunately, in the period since, the outlook has continued to weaken and our "secondary" target of 7,220 broken, quite conclusively.
This has created a rather unpleasant situation, one where weakness now below 6,500 suggests travel down to 5,923 next. Some considerable hope exists for a bounce at such a level as the implications, if broken, are of reversal to a further 3,233.
This target computation essentially matches the lows at the start of 2019, signalling once again bitcoin's rise has failed.
We do have some slight hope for a rebound around the 5,000 dollar mark, simply thanks to some prior twitches at such a level, along with the psychological self fulfilment concept of "it will bounce at the 5k mark". Frankly, we're not confident.
As the chart shows, bitcoin needs recover above Red, simply to regain the prior uptrend.
Presently, this level is around the 8,000 dollar mark and feels like a difficult ambition, given the strength of the wider stock markets.
Who knows, maybe 2020 will be the year when bitcoin can be seen clearly.
It needs to be said, will next year be "The Year of The Optician" in China? Can we have fines for eyesight jokes next year?
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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