Bitcoin Back on a BUY Signal

After hitting a high of almost $20,000 per Bitcoin on December 16, 2017, the price of Bitcoin plummeted to a low of $5968 in early February of this year. Several catalysts were given for the drop, from central banks all around the world threatening increased regulation of the cryptocurrency to major Wall St. banks such as JP Morgan's Jamie Dimon essentially calling Bitcoin a "fraud", and stated that he would "fire" any of his traders that were "stupid enough" to invest/trade in it. Most recently, twin $50 million sales of Bitcoin that have occurred over the past week by an alleged Bitcoin "whale", was not only absorbed by the market, but continued to rally.
The latest price action has allowed us to issue a BUY signal for Bitcoin as of the close of trading on April 20, 2018 at $8877.08. Normally we will issue a buy signal when the majority of our 3 indicators flip to buy signal, however given the downside volatility that Bitcoin has experienced over the past 3 months we decided that we would wait until all 3 of our proprietary indicators flipped to BUY before issuing a signal.

In addition, we'd like to point out that Bitcoin is also on a point-and-figure BUY signal. Point-and-figure has been used by major institutions on Wall Street for over 100 years (although few admit to it). Point-and-figure charting is ideal for filtering out the "noise" of trading, and focusing on the true underlying trend. Along with its noise-filtering characteristics, Point-and-Figure charting is ideal for establishing price targets for moves. Although we don't necessarily trade on this information, it provides at least some semblance of a road map of possible future trading activity. In this case, vertical targets for Bitcoin indicate a price target of $12,573--a 41% gain from current levels for this move. Again, that target is just for informational purposes only.

We hope you find our analysis useful. Thank you.