http://www.cnbc.com/3f8d477a-f180-4126-97b1-ebb77d83ca97
A Bitcoin conference in New York. Bitcoin a perfect asset for speculative bubble: Blodget
Thursday, 25 May 2017 | 11:10 AM ET | 03:46
Bitcoin is close to hitting a price that could see a 47 percent correction, according to one analyst, following a huge rally for the cryptocurrency that has led it to record highs.
On Thursday, bitcoin hit an all-time high of $2791.70, according to CoinDesk data, marking a 180 percent rally year-to-date.
Meanwhile, the number of long positions – those betting on bitcoin to rise – has risen 18.2 percent, while short positions – those thinking the cryptocurrency will fall – have declined 10 percent since the start of the week, showing that traders are getting more bullish on the cryptocurrency, according to data from Bitfinex.
One technical analyst, who looks at historical trading patterns to determine future price moves, told CNBC that the $2,800 could mark a level of resistance where the bitcoin pulls back. Bitcoin was as little as $9 off of that price on Thursday morning.
Nicola Duke, an analyst at analysis platform Forex Analytix, uses a form of technical analysis known as Fibonacci retracement, which looks at the peaks and troughs of previous "waves" or rallies and falls in bitcoin to get a sense of where the future price of an asset could move.
In "wave two" of bitcoin which started in the fall of 2013 and bottomed in January 2015, the cost of the cryptographic money revived strongly for a while before observing an enduring decrease. Following January 2015, the advantage started to rally once more.
Presently, the bitcoin world is in "wave three" and as indicated by Duke's investigation, $2,800 could be the level at which bitcoin starts its fall. The cost is probably going to hit $1,780, yet could even fall similar to $1,470, Duke told CNBC. This would check a 46.5 percent decrease from Thursday's high.
As indicated by Fibonacci investigation, the way positively trending markets ordinarily work is that you'll have a pullback that stops when it backtracks a key rate of a past move higher—these key rates all originated from supposed Fibonacci proportions. One of those proportions is 61.8 percent.
So she expects this specific wave, known as the fourth wave, to last 61.8 percent of to what extent wave two kept going, which implies the rally after the revision would begin in January.
"We will see the bottom in start of January, that is when stock markets typically tend to have a correction as well," Duke said.
http://www.cnbc.com/651358ad-fb60-48d3-ae58-461b34437855
A Bitcoin conference in New York. Bitcoin a perfect asset for speculative bubble: Blodget
Thursday, 25 May 2017 | 11:10 AM ET | 03:46
Bitcoin is close to hitting a price that could see a 47 percent correction, according to one analyst, following a huge rally for the cryptocurrency that has led it to record highs.
On Thursday, bitcoin hit an all-time high of $2791.70, according to CoinDesk data, marking a 180 percent rally year-to-date.
Meanwhile, the number of long positions – those betting on bitcoin to rise – has risen 18.2 percent, while short positions – those thinking the cryptocurrency will fall – have declined 10 percent since the start of the week, showing that traders are getting more bullish on the cryptocurrency, according to data from Bitfinex.
One technical analyst, who looks at historical trading patterns to determine future price moves, told CNBC that the $2,800 could mark a level of resistance where the bitcoin pulls back. Bitcoin was as little as $9 off of that price on Thursday morning.
Nicola Duke, an analyst at analysis platform Forex Analytix, uses a form of technical analysis known as Fibonacci retracement, which looks at the peaks and troughs of previous "waves" or rallies and falls in bitcoin to get a sense of where the future price of an asset could move.
A collection of bitcoin tokens stand in this arranged photograph.
Chris Ratcliffe | Bloomberg | Getty Images
A collection of bitcoin tokens stand in this arranged photograph.
In "wave two" of bitcoin which began in the fall of 2013 and bottomed in January 2015, the price of the cryptocurrency rallied sharply for several months before seeing a steady decline. Following January 2015, the asset began to rally again.
Currently, the bitcoin world is in "wave three" and according to Duke's analysis, $2,800 could be the level at which bitcoin begins its fall. The price is likely to hit $1,780, but could even fall as far as $1,470, Duke told CNBC. This would mark a 46.5 percent decline from Thursday's high.
According to Fibonacci analysis, the way bull markets typically work is that you'll have a pullback that stops when it retraces a key percentage of a previous move higher—these key percentages all come from so-called Fibonacci ratios. One of those ratios is 61.8 percent.
So she expects this particular wave, known as the fourth wave, to last 61.8 percent of how long wave two lasted, which means the rally after the correction would start in January.
"We will see the bottom in start of January, that is when stock markets typically tend to have a correction as well," Duke said.
A bitcoin rival also has the market's attention A bitcoin rival also has the market's attention
Wednesday, 24 May 2017 | 9:51 AM ET | 00:49
But after that, there should be a sustained rally to $3,350 and then $4,480 in 2018, Duke said.
So while the long-term prospect of bitcoin seems to be positive, in the near-term, traders could see a pull-back. However, not all agree with Duke's forecast.
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https://ca.finance.yahoo.com/news/bitcoin-near-level-could-start-120900406.html
Bitcoin price shows great resilience despite of the momentum indicators cooling off. It seems to be building a large base for another large jump within 2-3 weeks.