Bitcoin overdue for a move up, here's why:
1. Looking at the long term weekly log chart, one can see that we are currently moving toward the bottom of the downtrend channel. It is very likely we bounce off the bottom of that channel.
2. RSI is in the toilet, the only times in the past where it was this low were excellent times to go long.
3. Elliott wave theory indicates that we are currently trying to find 'C'
4. Linear chart should not be used. This isn't a situation where the price is moving by 10% or 20% we have had a massive, massive move up, and another move down, now down almost 85%. With moves like that a log chart should be used. The triangle breakdown that points to $1k that you hear chartists talking about is wrong, in my opinion. The top to the bottom of that triangle is approximately a $6,000 difference. That breakdown would put us below $0. Using a log chart that breakdown being approx -50% puts us at about $3,000. Also, it is common to see assets that break from a triangle to find support at about -50%.
5. Short interest. Good grief. Record short positions, miners are shorting, I just read a comment by someone who said, "I guess it's time to short." This is madness, just like when everyone was going long a year ago. All of these shorts have to cover at some point.
6. We just experienced nearly a -50% drop in value, with the worst month since 2011. I really don't see us having two or three months with -50% performance.
7. In the past when price moves up with mind blowing speed, and greed kicks in because if feels like the price will never go down, it goes down. And when the price is crashing through the floor and fear kicks in, and it feels like it will never go back up, it goes up. You decide, what does it feel like now?
1. Looking at the long term weekly log chart, one can see that we are currently moving toward the bottom of the downtrend channel. It is very likely we bounce off the bottom of that channel.
2. RSI is in the toilet, the only times in the past where it was this low were excellent times to go long.
3. Elliott wave theory indicates that we are currently trying to find 'C'
4. Linear chart should not be used. This isn't a situation where the price is moving by 10% or 20% we have had a massive, massive move up, and another move down, now down almost 85%. With moves like that a log chart should be used. The triangle breakdown that points to $1k that you hear chartists talking about is wrong, in my opinion. The top to the bottom of that triangle is approximately a $6,000 difference. That breakdown would put us below $0. Using a log chart that breakdown being approx -50% puts us at about $3,000. Also, it is common to see assets that break from a triangle to find support at about -50%.
5. Short interest. Good grief. Record short positions, miners are shorting, I just read a comment by someone who said, "I guess it's time to short." This is madness, just like when everyone was going long a year ago. All of these shorts have to cover at some point.
6. We just experienced nearly a -50% drop in value, with the worst month since 2011. I really don't see us having two or three months with -50% performance.
7. In the past when price moves up with mind blowing speed, and greed kicks in because if feels like the price will never go down, it goes down. And when the price is crashing through the floor and fear kicks in, and it feels like it will never go back up, it goes up. You decide, what does it feel like now?