Interactive Investor

Bitcoin: A level the cryptocurrency must hit

Recently, bitcoin hasn't done anything interesting. Our chartist looks for a catalyst.

17th September 2019 09:15

Alistair Strang from Trends and Targets

Recently, bitcoin hasn't done anything interesting. Our chartist looks for a catalyst.

Bitcoin (COIN:BTCUSD) 

While we were panicked about the price of Brent, due to some hysterical price moves during the early hours of Monday, we should perhaps have focused on gold and bitcoin.

Despite Brent Futures indulging in frantic spasms, neither bitcoin nor gold were doing anything particularly interesting. This, alone, should have warned us that the Saudi crisis was probably another case of media hype overtaking reality.

As Monday developed, a clearer idea of the impact on oil production emerged and still, neither of the alternate havens did anything useful.

Gradually, we started to suspect whatever had happened in the Gulf was not actually causing real panic in the marketplace.

Both gold and bitcoin actually started reversals, making us question the future for bitcoin.

The phoney currency had been looking useful just a month ago, yet has failed trigger upward movements.

The immediate situation with bitcoin appears straightforward. The price need only to slip below $9,850 to enter a reversal cycle to an initial $9,218.

Despite some sort of bounce being probable at such a level, if broken, our secondary calculates at $7,220 dollars.

Visually, this matches the lows of May this year and will be expected to provoke a real rebound.

Presently trading at around $10,140, bitcoin needs above $10,510 to give hope of an upward surge is coming. 

In theory, this should trigger movement up to an initial $10,756 with secondary, if bettered, a longer term $11,662.
 
For now, if we fall back to our "if it ain't goin' up" philosophy, we suspect it intends reversal.

Source: TradingView 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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