“A mob’s a monster; heads enough, but no brains.” –Benjamin Franklin
Below is the revised downside targets for Bitcoin based on the high of $19,343.04.
We believe that there is going to be limited upside in the near term. What in the world does that mean?
We think that the conservative downside target will be achieved before a new high is seen. The numbers we normally run for upside and downside targets usually show a generous upside potential gain. We often see a potential upside target that offers a gain of +20% to +30% above the previous peak. At the $19,343.04 level, the upside target is only +6.77%.
Remember, this run-up in bitcoin (+10,828%) is only slightly exceeding that of the 2011-2013 increase of +9,771%, as seen in the chart below.
In all prior booms, the subsequent bust AVERAGED –70%. That would mean seeing bitcoin fall to $5,802. This isn’t a hope, it is just a review of the available data as outlined in our June 26, 2017 article titled “Bitcoin: Is A Crash Coming?”
Sentiment is not good with Litecoin founder and chief marketer Charlie Lee selling his entire holdings, hacking of coins by North Korea and others and prognostications of cryptocurrencies exceeding $100,000 or more, ice tea companies changing their focus to crypto currencies and naturally, insider trading by the unregulated exchanges.
