Story by: Clem Chambers
Bitcoin is off to the races again, or so it looks like on the chart. Here it is:
Bitcoin is on the rise
Normally you can tell yourself this kind of action only has a 1 in 5 chance of being a real break out, but this looks sufficiently strong to me to make me sit up.
Here is why:
Bitcoin could break out
My regular readers will know I like to doodle on charts and if this is a breakout we will quickly break through 10,000 and go to 11,000-13,000. I think the 11,500 level is most probable, but this action is starting to look like the base of another bubble cycle.
Another vertical can go as high as $25,000 but it has to be remembered that there is no roadmap.
As I have written before, it’s hard to time a bubble–make that, impossible to time a bubble. For a start, the “high” might go in for only minutes before the price drops a lot. A bubble can lose 10% in a few minutes after the last forlorn panic buys go in. As such, you have to be there to sell and hit that bid and you can’t do it in size, so in reality that top is not real. The real top is where you can sell in size and it’s hard to know where that is and it could be days before the final crescendo.