RE: Dip tomorrow???16 Jul 2019 20:45
Bitcoin has topped and begun a pullback, market participants posting throughout social media sites have still been quite stubborn regarding this correction. A recent perusal of the largest crypto youtubers sees titles suggesting a run to lofty targets such as $42K, and even $100K, being imminent.
Yet, while social media pundits are currently still quite bullish, we fully expect to see some turn to look for new bear market lows before this is over. As R.N. Elliott outlined 80 years ago, second wave retracements make most feel as though the bear market has returned. In fact, this is how it is described in The Elliott Wave Principle:
“Second waves often retrace so much of wave one that most of the profits gained up to that time are eroded away by the time it ends. . . At this point, investors are thoroughly convinced that the bear market is back to stay.”
Furthermore, Bitcoin permabears such as Roubini and Schiff should loudly renew their assertion that Bitcoin is a scam and/or a bubble. And these assertions should gain support and become louder as Bitcoin drops down to its ideal retracement target between $5,523 (.618 retracement) - $7,857 (.328 retracement).
In conclusion, we have been bullish on Bitcoin since December 2018, as evidenced in our articles and public interviews. However, our last public article on Seeking Alpha noted that this market was overheated and was about to experience a correction/pullback. That correction is now upon us and could last a couple more months.
Lastly, $4300 is the line between a potential larger breakdown and the resumption of this bull market. As long as this market remains above that level, we are looking up toward as high as a six figure bitcoin price in the coming years.
Note: While we are listed as being long-term bullish on Bitcoin, please recognize that we see a high probability for a larger-degree pullback to depress prices over the coming months before resuming the bull market rally.
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