Bitcoin is the original and by far the largest cryptocurrency. Since its introduction in 2009 it has grown exponentially and spawned many competing cryptocurrencies. Opinion is mixed as to its true worth, but speculation and huge interest has created a volatile - and potentially very rewarding - trading environment.

Updated: 21/05/2020 1130GMT 0630EST

NEXT 48 HOURS

INDEX 48H

V= 4 C =4            Conditions:  large rally
F=1  I=2 T= 3 S= 4  Strategy:  buy dips

Higher...but how?

Bitcoin has started to form trend from the March lows and looks similar to most other risk assets. Ideally it still makes a further high above 10050 to complete the trend and then retraces into the 7000s to set up a further large rally. At minimum this rally should reach the 14000s, but the issue is if there is a dip first in line with our chart or if there is a more direct route. Holding the 10000s on the next leg up would imply the direct route is more likely.

 

 

 

 

 

EVIDENCE

NDX comparison
10D E1

NEXT 10 DAYS

INDEX 10D

V=4 C = 4              Conditions: recovery
F=2  I=1 T=3  S=4   Strategy: long

Bitcoin made a higher low with the 3135 low and should now be in a large wave C rally in proportion to the wave A made in 2019. Indeed, wee can still look for new highs and the NDX fractal will remain in play, but once the 14ks are reached we will have to decide on whether to map higher or lower. Until then, the tactic is to buy dips and stay long.

 

 

EVIDENCE

NDX comparison
10D E1

NEXT 3 MONTHS

INDEX 3M

V=4 C =2               Conditions: SLOWER  UPTREND
F=2  I=2 T=4  S=5  Strategy: LONG

The eventual path depends on how cryptos develop - if Bitcoin becomes an alternate to gold and a store of value for a new generation, and can hold 1135 got new highs to form a trend sequence above 20k, then the outlook is very bullish. This will have huge implications in the longer term as we could then expect at least another multi-year, proportional rally to the first 5 wave sequence after a long period of consolidation.