Will the bitcoin price defy logic again?
The digital asset is known for its irrational movements. Our chartist examines where it could head next.
8th August 2019 09:52
by Alistair Strang from Trends and Targets
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The digital asset is known for its irrational movements. Our chartist examines where it could head next.
Bitcoin (COIN:BTCUSD)
We noticed bitcoin has been doing "bitcoin Stuff" this week, exhibiting wild and irrational movements. Like a moth to a flame, we've once again attempted to make some sense as our last report at the start of July proved quite prescient.
At time of writing, it's trading around the $12,000 mark and the immediate situation suggests anything now exceeding $12,615 threatens some growth to an initial $13,198.
A movement such as this hints at a challenge of the ruling blue downtrend, probably quite soon. Exceeding $13,198 is liable to prove interesting as we're not the only folk equipped with a crayon to draw trend lines.
Essentially, the market will doubtlessly assume bitcoin is once again heading upward and our secondary of $14,540 looks quite attainable.
To be completely factual, should bitcoin opt to do "bitcoin stuff" and completely outperform logic, it could easily accelerate toward the $16,000 level, perhaps even $16,600.
Once in the $16,000's, we have a flashing red light which anticipates volatility should such a level actually appear.
Needless to say, it will also be true to suggest media pundits will start projecting bitcoin heading to $20,000 dollars and above, depending on which number they pluck out of the ether.
We will grudgingly admit to some calculation issues, if this imaginary currency manages above $16,600 as the price should (logically) almost double.
Alternately, below red and it faces a slowdown to $6,900 initially. Secondary is at the $4,000 level!
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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