On January 12, 2017, after Bitcoin achieved our prior downside target of $772.12, we said the following:
“Those who wish to speculate on Bitcoin should assess the risks and consider buy[ing] at [the] current level.”
Anyone who bought based on our work should have known that on January 1, 2017, we had the following upside targets:
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$1,158.18 (conservative)
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$1,737.26 (mid range)
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$2,316.35 (extreme)
What is important about our upside targets, issued on January 1, 2017, is that we emphasized a downside assessment was necessary after a parabolic run-up. We expected that the price would need to experience a large decline before any material rise could ensue. Shortly afterwards, on January 12, 2017, our downside targets were met.
On May 10, 2017, Bitcoin has achieved a new high of $1,750. If this level can be sustained, we think that the extreme upside target of $2,316.35 is possible. However, we have to acknowledge the downside targets that come with a parabolic increase.
Serious speculators (as opposed to investors) in Bitcoin should consider the inevitable decline that is to come as a reaction to the parabolic rise. Yes, there is a good chance that our target of $2,316.35 will be achieved. However, if, as a speculator, you have enjoyed some or all of the run-up since our January 12, 2017 recommendation, then you probably want to be able to enjoy it. We recommend selling now and watch for the ascending downside targets.