Bitcoin: February 5, 2018

If you’re holding Bitcoin at this point, it is because you are confortable with the projected downside target of $6,684.31 to $5,802.91.

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Since December 22, 2017, Bitcoin has had these downside targets.  Worth noting is that the rise from the low to the December 2017 peak is equal to the 2011 low to the 2013 peak on a percentage basis.  We’re within striking distance of the exact same percentage decline from the April 2013 peak to the July 2013 low.

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In the period after the 2013 peak, it is worth noting the “Dow Theory” retest of the 68.36 low at the 66.86 level.  This indicates that whenever the current ultimate low is achieved, there will be an initial spike, not to exceed half of the prior decline, then another decline back to the established low. 

Traders will make lots of money on this “dead cat” bounce.  Alternatively, those willing to accept the downside risk will know they can buy again at a preferable low without all the hysteria attached.

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