On November 4, 2015, we said the following:
“It has taken some time but Bitcoin appears to be on the rebound.”
“If the current run-up is anything like those in the past, $1,051 could be a relatively small number. However, each of the indicated upside targets must be achieved first before we can start giving estimates of how far beyond $1,051 Bitcoin could go.”
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:
$553.75 (mid range)
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.
As with the downside targets, we have three levels that we’re primarily watching for the upside. The upside targets are as follows:
$1,737.26 (mid range)
It has been asked of us in the past, “…how do you evaluate the upside resistance?” Our response is that upside estimates are only “educated” guesses as to where the price might experience some resistance before falling or trading in a range before rising further. However, based on our own observations, the upside target (tentative as it may be) is a multiple of two times the conservative upside target. This implies that the extreme upside level is a reasonable level to expect.