Since few believe that the current bloodbath in bitcoin will stifle cryptomania, I’ve hauled out an ambitious chart that extends the bullish imagination above 50,000. Of course, a rally to that number would be a mere pisher for hard-core crypto fans. Many of them are gamers who, it must be admitted, got aboard for chump change two years before most of us had even heard the word blockchain. Their bull-market targets range upwards of $500,000, but here’s a little something for you guys to ponder before you risk a downpayment on that lynx-colored Gallardo: the ‘Tether problem‘. Tether aside, anyone can see in the chart that bitcoin will probably need to spill more blood to properly correct a leg as insanely steep as the run-up from 10,000 in October to a high earlier this week of 42,000.
The so-far low of the nearly 30% correction since is 30,052. However, BRTI, which reflects the best bid/offer in real time across many cryptocurrency markets, would need to fall to 25,948 to reach the 50% threshold, and to 22,166 to hit the 61.8% Fibo. Ouch! No recent correction on the lesser charts has come even close to 50%, but this time could be different, since Mr. Market has a way of seeding doubts in even the most rabid bulls when they get too cocky. Whatever happens, if you trade this monster or one of its derivatives, you should stay closely tuned to Rick’s Picks, since the ‘mechanical’ entry set-ups we use to profit from the markets are well suited to harnessing even the most violent steeds. _______ UPDATE (Jan 23): BRTI has retraced a bit more of December’s rally as anticipated and would now trigger a theoretical ‘buy’ signal if this bounce touches the green line. The ‘D’ target associated with x is a very ambitious 54,331, but we’ll want to see more price action before we assume it will be reached. Here’s the chart. ‘Mechanical’ trades in this vehicle that have been posted in the chat room have racked up an impressive record, so stay tuned to the text scroll if you’re keen to time the next boarding opportunity in this vehicle or a related one. If you track or trade the symbol GBTC, the corresponding buy trigger lies at 36.35, shown in this chart. _______ UPDATE (Jan 27, 9:04 p.m.): Trade this monster? Here a chart that contains all of the information you’ll likely need over the next 2-3 days. ______ UPDATE (Jan 28, 10:11 p.m.): Bulls are about to turn the corrective pattern in my last chart into chopped liver by moving above the pattern’s 34,870 point ‘C’ high. I hadn’t expected cryptomania to return so quickly, but it evidently has, and with a vengeance. Now, a close above ‘C’ will put p=38,822 in play as a minimum upside projection; if it too is impaled, we’ll be looking at a likely move to at least 48,834.