Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Bitcoin's Sornette Bubble Setup

Published 07/18/2017, 10:44 AM
Updated 07/09/2023, 06:31 AM

Bitcoin/U.S. Dollar

Bitcoin has had Two Bubble Melt-Ups: Usually Means a Third

Bitcoin has had two vertical melt-ups, one in 2013 and one in 2017. And Didier Sornette has shown that setup usually means there will be a third after a retrace into the area of the first, with the third being the big mama of the three.

Another way to look at Bitcoin is as a big four-year+ megaphone that’s likely to break out upwards after a retrace to VWAP. It’s hard to see on the chart, but the 2013 top took the form of a megaphone with a VWAP around 900. Bitcoin needs a retrace to that VWAP to be legal for a breakout upwards with a target near 6000.

Bitcoin could also bog down in a prolonged sideways move across VWAP. But a huge melt-up is more likely, with this move the biggest and fastest of the three.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.