What Bitcoin Must Do To Avoid One-Hit Wonder Status: 4 Updated Charts
(Source: forbes.com)

clicks | 3 months ago | comments: discuss | tags: bitcoin


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(Original link: forbes.com)

Is Bitcoin a one-hit wonder? Like one of those odd million-selling hit songs from a group with a strange name that you never hear from again? Is it the investment world equivalent of Louie Louie by the Kingsmen ? On everyone's lips for a few months before the steady fade into obscurity?
I don't know the answer for sure but I am starting to wonder about it even after the most-watched crypto in the currency world had a few days of some actual buying interest last week.
How does it look now from the standpoint of technical analysis where price trends are tracked and levels of support and resistance are noted and followed closely? Here you go.
The daily price chart looks like this:
Bitcoin daily price chart. stockcharts.com
The main thing here is that this is not yet an uptrend. I saw a few headlines this week about "buying again in bitcoin" but until the price crosses above that down trend line or above the downward Ichimoku cloud , it can't be called anything significant.
Whether this is some kind of bottoming action remains to be seen, to put it mildly.
The weekly price chart looks like this:
Bitcoin weekly price chart. stockcharts.com
The bitcoin price continues to trend downward when viewed on a weekly basis. You can see that the up trend line connecting the lows from 2015 through the 2016 lows was broken late last year.
The down trend line connecting the late 2016 highs with the steadily lower 2018 peaks remains in place. If the price ever rises above that line, then you could begin to make a case. But we're not there.
The monthly price chart looks like this:
Bitcoin monthly price chart. stockcharts.com
The moving average convergence/divergence indicator below the price chart gave a technical analysis "sell" signal in June, 2018 and that hasn't changed. The up trend line that connects the 2015 low price with the 2016 lows was broken through in June of 2018.
The price remains below the downtrend line that's been in place steadily since the extraordinary peak prices of late 2018. If that line is ever re-taken on the upside then you might begin to hear real excitement again about the future of bitcoin and crypto in general. "If" is the key word there.
A "white" monthly price bar instead of a "red" one would be helpful to the bullish case -- we are on our 7th non-white bar here.
Here is the old-school point-and-figure chart:
Bitcoin daily point-and-figure chart. stockcharts.com
This one shows in dramatic fashion the extent of the drop from the 2018 highs to the recent prices at much lower levels.
If bitcoin is to be anything other than an investment world one-hit wonder, then the price needs to begin taking out some of those uptrend lines and sometime soon. Otherwise, it's the Kingsmen and not the Beatles or the Stones.
I do not hold positions in these investments. No recommendations are made one way or the other. If you're an investor, you'd want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor....

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