I’ve been gung-ho on Bitcoin for a while, but I’m unfurling the yellow flag this week because the recent lows, constituting a bottoming processes that took two months to complete, occurred beneath a downside target that should have contained the retracement to begin with. That set up a pattern which tripped a theoretical ‘mechanical’ short when Bitcoin hit the green line (x=96,055) two weeks ago. The trade would be unprofitable at the moment, but that is hardly a reassurance that this vehicle will surpass the pattern’s point ‘c’ high at 109,358 to stop out the trade. Even if it does, I will be on my guard against a head-fake, so stay tuned for updates if you want to stay closely apprised. Please note that I have published rally targets as high as 144k. _______ UPDATE (May 20, 9:01 p.m.): Here’s a high-confidence target for this animal at 113,127. Your trading bias should be bullish until it’s reached, and you can get short there with a preternaturally tight stop-loss if you’ve made a few bucks on the way up.
BTCUSD – Bitcoin (Last:106,585)
