They say it’s a private currency. I’m not sure I’d call a speculative store of imaginary value backed by nothing, that swings 10% in value on a given day a currency. I mean, what percentage of world commerce is carried out in Bitcoin or other cryptos today versus 2 years ago?
Right. Not much.
But these cryptos do seem to obey the precepts of technical analysis. In fact, they do so even better than stocks, or commodities, or almost anything. Which indeed makes them interesting trading vehicles, if you believe you can readily access actual government currency when you need it.
So here’s a longer term view from a weekly chart with a log scale for perspective. Long term cycle projections point to a target of 55-60,000. Done. The oscillators at the bottom of the chart measure Percentage momentum, True Strength of Trend, and another percentage price change measure.
The first indicator shows that the rate of advance is much slower in this bull phase than 2016-18. The second indicator shows that this trend is as advanced as the previous bull phase was at its peak. Ditto for the third indicator.
Take whatever conclusion from this that seems obvious to you. And consider that if this does roll over, major support is down around 9000. Not much risk there, huh?
Meanwhile Bitcoin’s promoters are now saying it’s going to a million.