On February 17, 2018, we said of Bitcoin:
“…before a new high (substantially above the $19,343) is achieved, we expected a retest of the $6,914.26 level (or something close, like, $7,000-$7,200).”
We will continue to revisit the parts where we got the analysis right because this is where Dow Theory was correctly interpreted. Below is the charting of the February 5, 2018 low and the subsequent rise and the retest of the low on April 1, 2018.
We have outlined the Dow Theory 50% Principle to indicated the difference between the $11,479.73 high and the $6,816.74 low. The $9,148.23 level is the point where we believe the price of Bitcoin could rise to before a retest of the $11,479.73 level, if remotely possible. Based on the recent volume characteristics, we think that the $9,148.23 is in the works. Failure to achieve the 50% Principle would be an indication of a retest of the $6,816.74 level and then a potential decline to the $3,713 level.