Bitcoin Is About To Move — But In Which Direction?
Story by: Clem Chambers
Market timing is the most difficult thing of all. It’s the very skill that you need to have to make a fortune in the markets and funnily enough it is technically impossible to have.
This is by way of apology for the market timing prediction I’m about to make.
[Ed note: Investing in crypto coins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin is about to move and move definitively. Guessing the direction is another challenge but timing is more important than direction.
That might not sound intuitive, but if you know something is going to reprice imminently, then when it begins to do that, you can jump on the direction, knowing the direction of travel will be significant. Make or break times in markets do arrive and bitcoin is at such juncture.
Here is the chart:
No chart would be complete without some pseudo-science, so what you see above is the end of a reprice series where the market has struggled to agree on a price for bitcoin. This has resulted in a series of rallies and dips that have developed into a tightening range. Once the range has shrunk to nearly nothing the price of the asset enters a new phase of discovery.
In other words, once the price is agreed the market is then ready to go off on another valuation ‘wild goose chase.’ A new chapter begins.
With the current setup the chart is telling us we are about to leave the aftermath of the bitcoin crash and enter such a new phase.
The shape of the bitcoin chart is not a novelty. The history of boom and bust in markets is full of similar charts.
The Nasdaq is a convenient example. This is the dotcom bubble: