Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Gold among Negative-Yielding Bonds - 20th Sep 19
Panicky Fed Flooding Overnight Markets with Cash - 20th Sep 19
Uber Stock Price Will Crash on November 6 - 20th Sep 19
Semiconductor Stocks Sector Market & Economic Leader - 20th Sep 19
Learning Artificial Intelligence - What is a Neural Network? - 20th Sep 19
Precious Metals Setting Up Another Momentum Base/Bottom - 20th Sep 19
Small Marketing Budget? No Problem! - 20th Sep 19
The Many Forex Trading Opportunities the Fed Day Has Dealt Us - 19th Sep 19
Fed Cuts Interest Rates and Gold Drops. Again - 19th Sep 19
Silver Still Cheap Relative to Gold, Trend Forecast Update Video - 19th Sep 19
Baby Boomers Are the Worst Investors in the World - 19th Sep 19
Your $1,229 FREE Tticket to Elliott Market Analysis & Trading Set-ups - 19th Sep 19
Is The Stock Market Other Shoe About To Drop With Fed News? - 19th Sep 19
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Bitcoin Price Is About To Bottom

Currencies / Bitcoin Sep 14, 2018 - 07:12 AM GMT

By: Avi_Gilburt

Currencies

The painful nine month bear market that began when Bitcoin topped in the mid $19,000’s is now the second longest bear market in crypto history; second in rank to one that began after the Mt. Gox sent Bitcoin down nearly 90% in 18 long months.

As is typical in a bear market, the investing public passes blame. Those trapped in the ensuing downtrend look for reasons they are losing money, as if the market owes them something. For cryptos, the opening of CME Bitcoin futures trading, which began trading shortly before the top, is the chief target. I’ve heard that it said that paper futures always ruin markets. Other targets of blame include regulation in the states and abroad, and the plethora of ‘crap’ coins on the market. The general and age old cry that the markets are manipulated also abound.


The fact is that euphoric sentiment brought this market to its knees. In fact, it was this same euphoria that led to the opening of the CME Bitcoin futures trading.

As Bitcoin launched like a moon rocket far too many believed they could get rich trading cryptos. From millennials planning to buy lamborghinis, to many retiring to trade cryptos without having traded any other asset class, these are just a couple signs of the ‘bubble’ boiling over.

Ryan Wilday, who wrote this article with me, has joked in prior articles that he no longer is asked out to lunch like he was at the top, when everyone wanted to take him out to talk about cryptos. Fortunately, Ryan was telling those folks to stop buying, and consider taking money off the table.

When we had finally confirmed the top was in, Ryan marked the $4700 region as the ideal resting spot for Bitcoin, with the possibility we see $3000. We had two strong rally attempts that put those levels in question- one in February and one in April. And, while Ryan watched them for the possibility that they reach escape velocity, they ultimately came back down through the supports he marked.

So we are now within spitting distance of this region and with a bearish setup that can take us closer to this key region. Further, we approaching completion an ABC correction, punctuated by an ending diagonal, a pattern that often brings a strong reversal.

In the chart attached, we outline an ending diagonal which started with the February high and completed as 5 waves to the spot we now find ourselves. But this final leg is not completed, and we are setting up for the final wave into the $5600-5800 region. Because Bitcoin is an asset with a tendency to extend in 5ths we may see that ideal $4700 region.

While we’d like to promise that this is the final bottom in this bear market, there are ways this market can grow more evil and complex. Mainly, this completed pattern we discuss above may only be followed by a corrective rally, a b-wave. This would suggest another larger degree decline can ensue months from now. So, as the market rallies off the low is strikes in the near term, we will track so that we can appropriately raise stops so we are not caught in a c-wave downdraft, searching for a lower low.

The euphoric sentiment mentioned above has been completely reversed and now resides in the basement. Apathetic may even be a better way to describe the sentiment amongst crypto investors and the general public, than outright bearish. While analysts that have always been skeptics of cryptos are congratulating themselves for ‘calling’ the bubble pop, those that tried their hand at investing in crypto seem to be quiet, bruised, with no plans of going back. Only small groups of die hard enthusiasts remain.

On the other hand, based on second hand information, it seems institutions have used this correction to accumulate. Word abounds of multi-million, even billion dollar purchases by banks and hedge funds. These big hands trade on the OTC market where the transactions are more stealth and not affecting price. The launch of institutional custodial services by Coinbase, the high speed crypto exchange called the San Juan Merc, and the growth of the CME and CBOE futures interest are all strong evidence that institutions are moving into the market. Will they power this market forward while the public remains apathetic and tired? We’re hitting key levels soon that will likely answer these questions.

Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader.net (www.elliottwavetrader.net), a live Trading Room featuring his intraday market analysis (including emini S&P 500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education.

© 2018 Copyright Avi Gilburt - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 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