Below is a chart of Bitcoin from 2012 to 2022, reflecting Price Momentum data.
We’re not advocates of Bitcoin. However, Dow Theory is all about price and the most compelling reason to follow Bitcoin is the fact that a price is quoted on a daily basis. As long as this continues, Bitcoin is worth your time and consideration.
What is our goal as New Low Observers? Our goal is to avoid committing resources to an investment at the respective high in price. In the case of Bitcoin, that goal has been achieved.
Below, we’ve outlined the periods when Bitcoin was at or near the same level (red boxes in chart).
All of these dates were followed, if held for a minimum of 3 years, with outsized changes in prices.
As we’ve mentioned before, declines of -50% or more are not unusual. However, if you’re immune to the risks, as a speculator, then Bitcoin might be in your wheelhouse.