The chart will tell us:
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Bitcoin (FXBCUS): Weekly Line Chart
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Click to Enlarge
Perhaps it could rise once more but I doubt it. Forget opinion – let's delve further into the technicals – and the oscillator comes into its own for giving us a convincing perspective:
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Bitcoin (FXBCUS): Weekly Line Chart
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Click to Enlarge
The rule of thumb is if the oscillator falls below the zero line by more than 10%, then things are looking shaky.
This event occurred about six months ago and at some point, we have to believe what we see. Bitcoin is no different from any other market except that it has been one with a very slippery slope.
The major point I make is that traders done heed the warning signals. The oscillator has been screaming at us for the last six months but yet there are still believers out there. Well at least those that are wishing and hoping and praying that it will come back.
It could have a new life but I would suggest any money you may have tied up in bitcoin as we know it today, you may as well kiss goodbye to it. We may see a new and different bitcoin in the years to come. Another hybrid may rise from the ashes with perhaps improved credentials. But for now, this iteration is nigh on dead.
I have no issue with people wanting to have a punt on the likes, but I strongly advise as with any other form of investment – know when to walk away.
Enjoy the ride
Tom Scollon
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