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Bitcoins

One of the things that 2017 will be remembered for is Kim Jong Un’s rockets being fired. These, though, are not the only rockets to have hit the headlines this year. Bitcoin is doing a great impression of something about to go into orbit too.

It is hard to remember the excitement back in August when bitcoin cleared $3,000 for the first time. Many people were predicting that it would crash back again and be a tulip bulb mania scenario all over again.

We are now just three months further on, and bitcoin has hit the $7,500, more than double that previous high.

A look at the weekly chart almost makes you grasp for the oxygen cylinder as the steep is so high.

Bitcoin Weekly Chart

If this momentum is sustained – it is highly possible that the cryptocurrency could reach a staggering $10,000 by Christmas.

As yet there is no technical reason for this rise not to continue. There is no resistance line in sight. The gap between the 21-day EMA (blue line) and the closing price of the bars is widening and the gap between the price and the 50-day SMA is widening too.

The pulse indicators (light green vertical lines) are strongly positive and increase week after week, coupled with the 14-day ADX (light green line) also moving in a positive direction.

Finally, the divergence indicator which showed a positive move back at the end of August (light blue dot) has been true to its word and seen a rise in strength after an initial dip. As with the pulse indicators, the length of the lines indicates a strong signal especially as the magenta tops are also getting bigger.

The wobbles over the bitcoin gold fork seem to have dissipated, and the cryptocurrency has gone from strength to strength. Perversely, it seems that the more it is bashed by the banks and governments, the stronger it becomes.

The Bitcoin price is now way above the $5,000 level, which seemed impossible a couple of short months ago. This will now become the key psychological support that buyers will want to protect. There is very strong momentum behind this upward move. It seems to be a wave 3 on an Elliott Wave projection.

The news that financial industries are planning to introduce ETFs and futures contracts based on bitcoin has further legitimised the digital currency in the eyes of doubters. This will bring speculative money into the marketplace, and push the price further towards the $10,000 mark. These new investors can put it substantial funds into this market.

Be aware, that these rapid markets gains are usually followed by retracements. Any pullback towards the 21-day EMA, or $5,000 level would be a chance to get back into the market if you have missed out so far.

Noble Gold specializes in IRAs and 401(k) rollovers through precious metals and cryptocurrencies investments.

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