Spotting the price potential in bitcoin
Bitcoin is showing signs of life after a stagnant few months. Our chartist looks at its potential.
10th April 2019 10:02
Bitcoin is showing signs of life after a stagnant few months. Our chartist looks at its potential.
Bitcoin (BTCUSD)
Our distrust of bitcoin remains as strong as ever, though the virtual currency is starting to exhibit some interesting potential for the longer-term. Or given the speed it can sometimes move, anytime soon!
For us, the key number against bitcoin is now at US$5,398. Essentially, if it closes a session above such a point, we can extrapolate the coming recovery to an initial $6,034.
If exceeded, our secondary calculates at $7,496 but before considering such, it's worth dwelling on the visual implication at $6,034.
Such an ambition virtually matches a plateau achieved during 2018 with the inevitable suggestion any rise shall find a glass ceiling awaiting at the $6,000 level.
Remaining on the subject of visual implications, it appears the price of bitcoin has successfully extracted itself from the ruling downtrend and now, appears to be making an effort. However, there is a red line across the bottom of the chart, presently at $3,485.
Concern would be justified with weakness below this level, now signalling the potential of travel to $2,778.
In itself, this is not particularly alarming as the entity would need to trade below $2,035 to justify outright panic.
At present, $2,035 signals our "ultimate" bottom for bitcoin, this being the level we cannot calculate below. Absolutely nothing suggests this is a risk. For now, anyway!
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.
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