Letting Bitcoin Pass Me By

• Posted by Greg Harmon
• on November 27th, 2013

My life is pretty complicated and full. Between managing money for clients, writing a newsletter and working on the final edits of my book there is about enough time to sit with my family for Thanksgiving Dinner this year. So when people try to start talking to me about the value and potential of Bitcoin ($BCOIN) my first reaction is to pull my hair out. What the heck is wrong with using a credit card or US Dollar cash anyway? I do not get it and have not even tried to understand it. But as a service to you traders out there Jones-ing for something to trade with the markets closed over Thanksgiving I give you a special treat. I cannot help but notice the discussion of whether or not Bitcoin is in a bubble. And the weekly chart most clearly says maybe but it does not look to be over yet. When viewed through the prism of the Elliott Wave it has come a long way quickly. Hell when viewed anyway it has moved a lot. But the Elliott Wave analysis suggests that it has more room to go. Deep into the technicals the 5 wave structure suggests that it is in wave III of Wave V. What does that mean? That even if it were to reverse today and start the down Wave IV there is still a Wave V of Wave V higher to come. Some

math gets you to the possibility of a move down to 675 (38.2% pullback) or so and then a reversal to as high as 1525 (similar move to Wave III higher). Now before you mortgage your house and sell your kids for medical experiments this is not a forecast, but a method of reviewing the current patterns. It may still run another $200 before a pullback starts. It may reverse all the way back to 200 before the 5th wave. It may only just reach the high at the end of this Wave III on the final leg. But what else do you have to work with?

Good luck trading this tomorrow as I am dining on Turkey, mashed potatoes, stuffing and pumpkin pie. I can assure you that Bitcoin will not come up in the conversation at our table. Happy Thanksgiving!

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through November 2013 Expiry and sign up here for the free 7 day trial before you pay.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus