Bitcoin (BTC): Basing Signals on Our Radar

January 22, 2019 / by Bill Noble

The recent chop in Bitcoin (BTC) may be having a surprising effect. It is creating disillusionment in the institutional community.

Said differently, Bitcoin (BTC) is boring people to tears, and people seem to think Bitcoin (BTC) is “dead money.” That implies people think Bitcoin (BTC) is not going anywhere, so committing capital won’t produce any return.

Meanwhile, as sentiment gets apathetic/negative, a potentially positive chart scenario is evolving.

Bitcoin (BTC) is tracking a homemade version of a Wyckoff basing scenario quite nicely (Figure 1). Looking at the Wyckoff example in theory (Figure 2), it would seem that Bitcoin (BTC) is on target to make a bottom sometime during Chinese New Year.

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In terms of timing, there might be a pop to $3,800 and then maybe one final drop post Bitcoin (BTC) futures expiration. If Bitcoin (BTC) holds up post futures expiration, the potential disillusionment on the sentiment side may enhance the idea of a bullish base.

Also, Fibonacci circle analysis shows potential for a pop higher if Bitcoin (BTC) on Coinbase can hold $3,528. (Figure 3).

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Bottom Line: The tide may be turning in favor of Bitcoin (BTC). The Crypto.IQ Trading Desk is ready, preparing the tactical levels to take advantage of the next big move.

Join me there.