Bitcoin has been on a wild ride of late. While surprising to some, with estimates of how much you would be a billionaire if you held from the inception, we’ve been providing upside and downside targets that have been achieved with relative ease and accuracy well in advance of the move (see our January 1, 2017 posting).
Recently, Bitcoin has managed to rise as high as $2,476.30 on a closing basis according to Coindesk.com’s Bitcoin Price Index. The closing high is actually well below the intraday high of $2,791.69 set on May 25, 2017. We’re going to provide upside and downside targets based on the indicated closing high.
Downside Targets
The most dominate concern at this time is the downside targets. When applying Edson Gould’s Speed Resistance Lines to the price of Bitcoin, we see that the ascending downside targets as follows:
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$1,262.16 (conservative target)
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$1,043.80 (mid-range target)
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$825.43 (extreme target)
Throughout our history of tracking downside targets for Bitcoin (in real-time), the conservative downside target has always been achieved after a parabolic rise like what has been recently experienced. There is always a first for everything so, assuming the worst case scenario, this would be the first time that hitting the conservative downside target hasn’t been accomplished after a parabolic run-up.
Upside Targets
Our previous background with following Bitcoin indicates that we expect the downside target to be met before the upside targets. This means that the upside targets are based on Bitcoin hitting $1,262.16 or lower before going higher. The upside targets are:
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$1,893.25 (conservative target)
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$2,839.87 (mid-range target)
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$3,786.49 (extreme target)
As Bitcoin now sits at $2,330, the current upside targets of $2,839.87 and $3,786.49 are used as points to reassess the downside targets if $1,262.16 is not achieved in the interim.
