I’ve been steadfastly at bitcoin’s side the whole way up, raising my sights when necessary and putting out ‘mechanical’ buy signals for anyone crazy enough to trade it. Since virtually all of the signals have been profitable, perhaps you’ll be willing to humor me when I say that the 66,880 target shown is where the mania could end. This is somewhat higher than the target I mentioned in the chat room the other day. At the time, I hadn’t noticed the luscious point ‘A’ low on the weekly chart (see inset). In any event, I am no longer so naive as to suggest that it might take a little time for bitcoin to get there. At the rate this parabolic blowoff is going, it would be no surprise if bulls hit the target before the week is over. Thereafter, it would require a pullback and a new rally leg to allow me to come up with a new target. Alternatively, if BRTI blows past D without so much as a howdya do, it would lend weight to predictions that bitcoin will eventually trade for $250,00, or even $1 million. I doubt this will occur, but I am not about to assert that it could never happen. _______ UPDATE (Feb 23, 7:17 p.m. EST): A nasty plunge has tripped a dicey ‘mechanical’ buy at p=47,845, stop 41,500. At the risk of missing the bottom of a presumptive correction and a potential shot at D=66,880, I’ll recommend placing the mechanical bid at 38,328, stop 28,809. A paper trade is suggested if you simply want to keep score. So far, ‘mechanical’ buy signals have been batting 1.000, even at the sub-$4000 low that preceded the current mania.
BRTI – CME Bitcoin Index (Last:48653)
