I called the top of bitcoin here last year as $120,000 or there abouts and much to the consternation of many that is what we have had so far. Meanwhile pundits and famous investor believers were calling $1m a Bitcoin and as high as $20m a bitcoin, It couldn’t break out for the next leg up.
However Bitcoin hasn’t rolled over as I have projected. Direction is not too hard, but timing in extremely difficult.
But lets look up the set up for the next move. Its pretty symmetrical.
The moves suggest that the market is still in a state of confusion.
This is not surprising because one of the few use cases for bit coin is ‘flight.’ Without doubt the dodgy countries who are major state miners will be very uncomfortable and many will be preparing their bug out bag of BTC. This is support for Bitcoin and when it rallies its not usually long before things start to go bang!
Of course parties dumping BTC because of this may also cause volatility but that is unlikely to anywhere near match the accumulation.
However I see downwards pressure as the likelihood to get the upper hand and here is a sketch of that possibility using history and fractals as an indication of where Im expecting it to eventually head off to.
I think this is conservative. $40,000 is my target.
However with the wild men in the Whitehouse, ‘the bitcoin is for flight’ might forstall a fall for sometime and in the end, Bitcoin as the currency of the ‘adversary’ might just be enough for the US to take umbrage again.