Bitcoin throws some beautiful moves on the chart and will go down in the history
books and Charting Books of the future as a text-book example of what a scrap
of (electonic) paper can do if the story behind it is written well enough.
Right now this is the best of the best, making Facebook and Google and Tesla
look lame. How long can this keep going on before it boils over?
One thing for sure, parabolas are very rare in real time (they are everywhere
on the monthly charts...put the Dow DOWI on monthly chart and see all history
and a parabola emerges - not so perfect as Bitcoin , but basically parabolic in
shape on linear chart) .
But Bitcoin is something else - so rare and beautiful to see one unfold.
There is no sense in fighting a parabola. Every bear lies slaughtered for miles
around as evidence. This bull will rip you a new one before you even have a
chance to take your pants down.
Nevertheless we can see from the chart on right that the current surge from
6165 up to 7500 high precisely has been very lightly contested/fought over -
there has been some push and pull, shown on the left hand chart, throughout
this recent ascent, with some nice positive pin bars each time the rising support
line that's underpinning the ascent is touched - but returning to right hand chart
it's clear that usually moves such as these have to be backed and filled first
before the rally resumes in earnest, and in doing so it should give those still
wishing to get long of this monster one last fleeting chance to do so...
At the moment it's found support just above the supports shown on left hand
chart and trying to fly higher - it needs to take out 7500 now to stay positive...
if we see it falter and fail just above or just below 7500 then we have the first
sign that a turn might be approaching fast...next sign would be a breaking below
7061 and a fall below the rising support line shown on left hand chart. Only at
that point will the near term picture start to turn negative for Bitcoin .
It should then fall back to the old highs around 6165 - to the rising support
line shown on right hand chart at around this level - that would be the perfect
entry point for those wishing to ride this tiger...time will tell.