In fact, it is (only) about the logarithmic 1-week chart of Bitcoin. The linear view is actually even more extreme. When looking at the parabolic development of the price, the picture of a slot machine that you push up urges me. How long you push it up depends on how strong the nerves are or how big the player’s risk appetite is. The chart shows the complete bullish phase since the last sell-out in January 2015, far left (marked with the black arrow). Since the current development since the beginning of the year in terms of steepness quite keep up.
Back to the facts. The Bitcoin broke out of his wedge at the weekend. He quickly climbed from 8,000 USD to 8,800 USD above the lower of the two yellow lines. One can now assume that the Bitcoin has marked a new higher high. That would be half of what it takes to talk about a bullish turnaround. The other half, which is absolutely necessary, is a new higher low, which should be well above the low of December 2018, marked by the blue line. Only when both halves come together, we have the turnaround. Because it could be that the next low is below the December lows, which we would continue in the bear market.
How high the Bitcoin still increases, remains to be seen. This can also go in the direction of the upper yellow line and beyond. That he can not continue this parabolic development so eternally, is undisputed. Sooner or later comes the search for the higher low. And that raises the question of where that could be. The dashed blue line could be around 6,000 USD, or the green upward trend line that Bitcoin might hit at 4,500 USD.
The Bitcoin eruption on Sunday evening described above was anything but convincing. The volume was lower. The follow-up purchases were missing. Well, maybe they will come. Personally, I made my decisions in light of the chart’s development and I am currently out of the game. I am waiting for the higher low to re-enter long positions in Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecon and IOTA in my eToro account CryptosWithB66, which underlies this blog. How do you decide?
Finally, I’d like to thank eToro, who added my CryptosWithB66 account and me to their referral list for those eToro customers who want to invest in Cryptos and are looking for an account to follow or copy.
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