Interactive Investor

Can bitcoin hit this analyst's target?

With the cryptocurrency still volatile, our chartist finds clues that indicate future direction.

14th October 2019 09:21

Alistair Strang from Trends and Targets

With the cryptocurrency still volatile, our chartist finds clues that indicate future direction.

Bitcoin BTC USD 

Further to our report in September, bitcoin did tumble to $9,218 and, in the period since, has hovered above our secondary longer-term target at $7,220.

So far, the closest achieved has been $7,665, visually giving an impression it may be "close enough" to bottom, if any real strength is apparent.

We're not entirely sold on the idea, thanks to the blue downtrend. It suggests bitcoin presently requires to exceed $9,900 before we dare start to trust any rise.

The reason is fairly painful, as weakness now below $7,665 indicates expected travel to an initial $7,220 with secondary, if (when) broken, now at a long-term $4,900.

Despite such a secondary sounding like a substantial drop, it simply returns bitcoin to the levels of April this year.

In plain English, the forces against bitcoin, even though it has not achieved our $7,220, remain down at present.

To give an indication that any rise may prove genuine, the price needs above $9,534 as this apparently calculates with an initial ambition at $9,955. If exceeded, secondary calculates at $11,745, along with almost certain hesitation.

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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