Best of the Week
Most Popular
1. Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - Nadeem_Walayat
2.Gold Price Focusing on May Cycle Bottom - Jim_Curry
3.Silver, silver, and silver! There’s More Than Silver, People! - P_Radomski_CFA
4.Is the Malaysian Economy a Potemkin Village - Sam_Chee_Kong
5.Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - Troy_Bombardia
6.A Big Stock Market Shock is About to Start - Martin C
7.A Long Term Gold Very Unpopular View - Rambus_Chartology
8.Stock Market “Sell in May and go away” Study When Stocks Are Down YTD - Troy_Bombardia
9.Global Currency RESET Challenge: Ultimate Twist - Jim_Willie_CB
10.The Coming Silver Supply Crunch Is Worse Than You Know - Jeff Clark
Last 7 days
Blackstone, BlackRock or a Public Bank for California’s Money? - 27th May 18
Stock Market Study: How Long After a 10%+ “Small Correction” to Make New Highs? - 27th May 18
Gold, US Stocks and Bonds - 26th May 18
Climate Change Canaries and Our Changing Climate - 26th May 18
Gold Junior Stocks GDXJ ETF Fundamentals - 26th May 18
What to Expect at a Critical Stock Market Point: End of a Wave 2 Rally - 25th May 18
Merlin Passes Top Tips for Buying and Using Premium vs Standard, Theme Parks UK - 25th May 18
Trump “Victories” on Trade are Anything But - 25th May 18
Crude Oil: It’s Here! - 25th May 18
Stock Market Distribution Pattern Revealed - 25th May 18
Stock Market Topping - Everything Looks Rosy at the End of a Trend! - 25th May 18
Trump Puts North Korea Nuclear WAR Back on Track as Plans for Nobel Peace Prize Evaporate - 25th May 18
Insane EU GDPR SCAM Triggers Mass Email Spam Attacks! - 24th May 18
Stock Market Higher Again, but Still No Breakout - 24th May 18
Study: Slowing Global Economic Growth IS NOT Bearish for U.S. Stocks - 24th May 18
What if This Week’s Rally in Gold is Already Over? - 24th May 18
EUR/USD – Reward for Bears - 24th May 18
5 Terrible Trading Mistakes That Rookie Investors Keep Making - 24th May 18
More Clarity for the Short Term for Bitcoin Price - 22nd May 18
Study: A Rising and Strong U.S. Dollar Isn’t Consistently Bearish for the Stock Market - 22nd May 18
Gold, Silver & US Dollar Updates with Review of Latest COTS - 22nd May 18
Upside DOW Stock Market Breakout May Be Just the Beginning - 22nd May 18
5 Reasons Why Forex Trading Is Becoming Such A Big Deal In SA - 22nd May 18
Fibonacci And Elliot Wave Predict Stock Market Breakout Highs - 21st May 18
Stock Market Ideal Cycle Low Near - 21st May 18
5 Effects Of Currency Fluctuations On The Economy - 21st May 18
Financial Conditions are Still too Easy for the Stocks Bull Market to End - 21st May 18
US Stock Market Elliott Wave Predictions for 2018 and Beyond - 20th May 18
Are You Still Fearful of Cryptos? - 20th May 18
US Stocks - Why I am Short-term Bearish, Medium-term Bullish - 20th May 18
Looking for a Turn in Gold Price - 20th May 18
GDX Gold Mining Stock Fundamentals 2018 - 19th May 18
Semiconductor Stock Market Canaries: Chirp, Warble… Soon a Croak and Silence? - 19th May 18
Three Drivers of Gold Price - 18th May 18
Gold Market in First Tertile of 2018 - 18th May 18

Market Oracle FREE Newsletter

Trading Lessons

How is the Adventurous Path of Bitcoin to $2,000?

Currencies / Bitcoin May 08, 2017 - 05:10 PM GMT

By: Submissions

Currencies

Jack Huyn: Recently, the parabolic rise of Bitcoin has made it become a very very hot currency that attracts many investors and speculators. In my opinion, movements of this cryptocurrency these days are just a sign that Bitcoin is a bubble waiting to burst.

Fundamentally, the current uptrend of Bitcoin prices are due to the following factors:


#1. Rising demand of institution investors toward Bitcoin when they have begun to recognize Bitcoin as a long-term investment, store of value and settlement network.

#2. The explosive growth of the Japanese Bitcoin exchange market after the Japanese government’s legalization of Bitcoin and the elimination of taxes for Bitcoin trading have hugely impacted the Bitcoin trading ecosystem and the demand for the digital currency in Japan.

#3. The actions of governments in an attempt to regulate the Bitcoin environment when many more countries will become involved with Bitcoin regulation as the year continues, which is a positive development revealing that Bitcoin is becoming more legitimate and welcome into the mainstream.

Observing the recent long run of Bitcoin, many experts and technical analysts predict BTCUSD will rise towards $2,000 then  $3,000 or even $5,000 and $10,000  in 2017. Wherever Bitcoin prices go, there’s certainly higher volatility in Bitcoin price movement and it's riskier in trading Bitcoin.

From my point of view, technically, based on my Elliott Wave count, I expect BTCUSD will have difficulty in staying firmly above the $1,600 in the coming days and weeks. The Elliott Wave count on BTCUSD’s weekly chart shows that we’re in wave (3) of wave 5 in III that may follow an Impulse (IM) wave pattern. On the H4 chart, I expect wave (3) to top out around $1,600 – 1,610, then wave (4) will develop in a corrective Zigzag (ZZ) wave pattern. In short term, BTCUSD will have a period of consolidation $1,610 - $1,450. After that we may come into a downside movement that retreats to $1,270 (for wave C of (4) to finish the corrective period).

When this corrective wave finishes, BTCUSD is expected to rise again for the next uptrend in wave (5) of (5) in III that may rise toward $1,900 and the $2,000 psychological level within a couple of months later on.

Prices of financial instruments move up and down in predictable cycles. After a parabolic upside cycle often comes a very steep downside one. I suppose that the bubble of Bitcoin market will burst someday and we may witness a panic crash in this market as we ever saw in gold and many other financial markets.

Wait to see and please be careful with this bubble market.

By Jack Huyn

Disclosure:
Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

http://www.fi24h.com/2017/05/how-is-adventurous-path-of-bitcoin-to.html

About Jack Huyn

Jack Juyn is a technical analyst specializing in Elliott Wave Theory, with more than 10 years of experience in analyzing and forecasting the trend of such markets as gold, currencies, stocks, commodities (coffee, black pepper, rubber…). Before becoming an independent technical analyst and freelance forex trader, Jack Huyn worked for many financial advisory organizations. At present, Jack Huyn is a Technical Analysis Advisor for www.fi24h.com. Contact Jack Huyn at huynjack@gmail.com.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules