Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Is Bitcoin Still A Buy?

By Dr. Arnout ter Schure CryptocurrencyOct 08, 2020 03:04PM ET
www.investing.com/analysis/is-bitcoin-still-a-buy-200540418
Is Bitcoin Still A Buy?
By Dr. Arnout ter Schure   |  Oct 08, 2020 03:04PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Two weeks ago, I wondered if it was time to buy Bitcoin (BitfinexUSD) via the Gray Scale Bitcoin Trust (OTC:GBTC).

I concluded, "odds are starting to increase a more significant low is forming for GBTC (and BTC). … As long as the instrument can stay above its 50-week Simple Moving Average (SMA, $10.22), it has a good chance of moving higher."

It was then trading at $11.01. It dipped to as low as $10.00 on Sept. 30, but it held the 50w SMA on a daily and weekly closing basis. Now, it is trading at $11.95. That is an 8% gain since I posted my article. So yes, I think it was an excellent time to buy, as odds were good, and on my private twitter trading feed, we rebought GBTC on Sept 30.

Figure 1:

Bitcoin Daily Chart.
Bitcoin Daily Chart.

With that in mind, I would like to assess the actual cryptocurrency BTC in this update as I do daily for my premium BTC, GBTC members. The above chart shows my bullish Elliott Wave Principle (EWP) count. There was, and still is, also a bearish option, but since BTC is currently back above its 20-day and 50-day SMA, while all the technical indicators (TIs, like RSI5, MACD, FSTO, MFI14) are pointing up, and are on a buy, I (must) prefer the bullish option.

In the above chart, you can see my detailed EWP count has a major 2/b low in March and a (red) intermediate wave-i/a top in August. Note how green -minor- wave-3 and -5 of red a/i tagged the classic 138.20% and 200.00% Fib-extensions of wave-1, measured from wave-2. See the link on why that is classic: https://intelligentinvesting.market/elliott-wave-theory/ And note how wave-4 found support at the 100% extension, allowing for a classic 5=1 relationship. This is Elliott Wave combined at its finest.

BTC then bottomed in September for a classic (green) c=1.618x a relationship and a perfect symmetry breakdown (blue arrow = width of the blue box) to form ideally intermediate wave-ii/b. As you can see, symmetry is always essential, and why I use it to augment my EWP analyses with it. Since that low, the price action has been sideways up. A bit messy on the smaller time frame as it gyrated around the 20d SMA, while unable to reclaim the 50d SMA. Thus, for some time, I kept my premium BTC, GBTC members abreast of both the bullish and bearish EWP option, continuously stating, "Bulls need to reclaim the 20d and 50d SMA". Now that these two are being reclaimed, it is time to strap the bullish hat we were already wearing tighter.

The detailed EWP count shows BTC could be in the starting gates of wave-3 of iii of 3. One of the most powerful moves. The money maker. All as long as for starters today's low holds, and BTC cannot drop below last week's low (grey wave "ii?"). As then, the bullish setup, as shown, is off the table. Thus, as usual, thanks to the EWP, we have our options on the table, with the bullish path preferred, and clear cut off levels to tell us where our preference will be proven wrong. If I am right, BTC should now be on its way to, ideally, $21,500-$23,500. For now, baby steps: let's see if the 50d SMA can hold, if BTC can close above $11,000, and then above $12,000. If it can do that, then the bulls are in good shape, and we can start moving up our stops on our GBTC position.

Is Bitcoin Still A Buy?
 

Related Articles

Is Bitcoin Still A Buy?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
robert mcdonald
robert mcdonald Oct 09, 2020 4:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My knowledge btc, bullish 18,000 soon anywhere from now to 2021. The beginning of it to the middle of 21 and maybe for several years after too.
Dr. Arnout ter Schure
Dr. Arnout ter Schure Oct 09, 2020 4:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Agree, all other comments below just proof the Bullish thesis. Only negative unsubstantiated opinions. Those do not pay the bills. Being in the market does. Let’s see where things are in two weeks from now. Good times!
GÜNGOR URAS
GÜNGOR URAS Oct 09, 2020 12:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hahah show me ****how much do you have btc??
Venkat Sadasivam
Venkat Sadasivam Oct 08, 2020 7:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Paid news!You get paid for these news but we will loose money if we buy .
Phil Kimmel
Phil Kimmel Oct 08, 2020 4:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bitcoin? Really? Laughable
Din Joekhannaz
Din Joekhannaz Oct 08, 2020 4:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bitcoin adoption is growing... i bet it wont go nowhere...
Stephen Fa
Stephen Fa Oct 08, 2020 4:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no sense buying Greyscale as it has a premium over asset value. Buy the real thing BTC on Gemini or Coinbase
Jorden Hollingworth
JHJH Oct 08, 2020 3:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I love this pyramid scheme stuff.
Stephen Towne
Stephen Towne Oct 08, 2020 3:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
me too, every company on every exchange is a pyramid scheme when you think about it. The CEO's and other executives at the top and employees at bottom. Gosh love those pyramid schemes
Stephen Fa
Stephen Fa Oct 08, 2020 3:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bitcoin is a digital commodity or currency, not a company or exchange.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email