Some will say it’s dead and buried. It most certainly isn’t the hot thing in the news right now. The technicals, however, paint a different picture.
What does this mean? While it doesn’t imply the old high of 1200$ or so will ever be reached again, it does imply the price drop is now pretty much over. I believe bitcoin is here to stay, whatever its final price may be.
[EDIT] This does not show on the log scale yet, so take this whole article with a grain of salt.
I haven’t written about bitcoin for a while, as it was on a downward spiral for quite a while. That seems to be reversing now, and it’s actually just one more confirmation of an upcoming USA market downturn. People are looking for other places to invest, and bitcoin is likely to be one of them. The results may well end up being huge, as the bitcoin system is tiny compared to other sectors, so a sum of money which may seem trivial in comparison to, say, housing, can be quite significant in the world of bitcoin.
I’ve included a chart which shows the standard 5-3-5 (red, green, red) correction, with marked corresponding subwaves. As we can see, the black trendline has been breached, which means the upturn is coming. Now, the first resistance line seems to be at around 500$. Although there have been several one-day drops below 400, they are irrelevant and have already been breached. The 500 resistance is unfortunately quite vague and approximate, because there aren’t many clear cut turning points. I would consider it more like a resistance zone, which covers everything from 450 to 550. I believe bitcoin may move sideways for a while in that zone, after it cools down from the recent 300->450 rise.
After that, I believe the resistance points of interest are around 700 and 1000$. Unless something horrible happens in the bitcoin world, I think those levels are likely to be reached quite soon.