On January 1, 2017, we said the following:
“The $1,051 upside target appears to be within reach as the digital currency is currently trading around the $1,006 level. It is at this time that we need reassess the prospects for Bitcoin both on the upside and the downside. Starting with the latter, we have posted the downside targets based on the most recent price indicated.
“As we’ve indicated in the past, the downside targets are paramount as they are the best assessment of the risk a speculator or investor might be taking when they decide to take the plunge. As highlighted on the chart above, the downside targets are as follows:
- $772.12 (conservative)
- $553.75 (mid range)
- $335.39 (extreme)
“Anyone considering being involved in Bitcoin for speculative or investment purposes should readily accept that the extreme downside targets are always in play. This means that if you’re going to be involved in this currency you should always keep a portion of funds available for the prospect of the downside risk or accept that all funds invested could take a severe decline.”
According to CoinDesk.com, Bitcoin achieved a closing high of $1,129.87 on January 4, 2017. Since that peak, Bitcoin has managed to plunge to the conservative downside target of $772.12 on January 12, 2017.
Those who wish to speculate on Bitcoin should assess the risks and consider buy at current levels and lower. Those who wish to “invest” in Bitcoin should assess the risks and considering buying at or below the mid range target of $553.75 or lower. Anyone considering a new position in Bitcoin should be willing to accept the $335.39 extreme downside target as it has been achieved in all except one of out several previous upside and downside assessments.