Title is provocative but is not totally fanciful. Just as when I wrote that bitcoin could reach $500 when they were below $50 it is also possible that now bitcoin could be propelled over $5000! Which is actually a conservative number.
Seems like ages ago but was only the start of 2013 ..
The same trend line on the log chart of that old post is near to being tested again it could very be interesting if bitcoin stays above that line.
Heres another look at that my chart which I’ve still been tinkering about with.
Primarily this is a bitcoin chart but in order to manage to include historical data from MtGox I have to choose a symbol with long time period as such I’ve chosen gold. I am interested in comparison of bitcoin and gold which can both be seen on this chart and are both forms of money which rival the fiat central banking bits of paper we all love to value (for some reason)
It is strange to see all the volatility and the price peak of gold and subsequent decline look so flat compared to bitcoin when both shown on same scale. Price is log in this chart. While gold looks like a stable store of value from this perspective bitcoin on the other hand looks like its ready for another rampaging bull run after already rising from only a few cents up to over $1000.
With price now down below $400 is bitcoin looking cheap again ? If bitcoin was to follow those arrows which would be similar to the first Gox bubble that would be quite epic!
While I’m at it heres a look at some other charts.
This is the bitstamp log chart I have revisited several times. I’ve often stated that a date with the lower trendline of that channel is on the cards. Price is falling steeper than my last red arrow but still has a bit further to fall to hit that line.
Heres bitstamp on linear price scale.
On this chart price falling steeply and rapidly. Looks like the down trend is winning out from all appearances of this view. Is double (or is it triple?) bottom reversal on the cards ? Hard to see where the support is except perhaps the horizontal area around the April 2013 high, blue line.
I haven’t really visited the downside risk on this post but I’d be looking to see where price rebounds before buying in. Price still may fall further in short term. If that support from the top chart doesn’t hold then bitcoin can still go a lot lower. This is not without risk.
Disclaimer: Investment desicions are your own. You may choose to buy into the stock market instead of bitcoin (by shorting them 🙂 ). Good luck