Tuesday, December 17, 2013

Massive Head and Shoulders Formation Developing on Bitcoin Price Chart

Bitcoin price, currently at $735.00. All time high $1240.00

I wrote this yesterday in the EPJ Daily Alert, when Bitcoin was about $100 higher:
As you can see from this chart: https://docs.google.com/document/d/1afGsBow019gx9qvAPA-rLs4yZQauRQGvx7LcdHAKhp8/edit?usp=sharing Bitcoin appears to be forming a  major head and shoulders formation. There are various necklines. One at $745, another at $576 and a third at $453. Drops to any of these necklines would be steep drops in themselves, but breaks of these necklines would suggest even greater declines.

I have noted many times here in the ALERT that I only use technical analysis that can be explained in terms of human action. The head and shoulders pattern is one such technical pattern. It shows when buying is drying up based on price action. If you own any bitcoins and have been contemplating when to get out, this may be a good time. But note: the slowdown in buying as indicated by the head and shoulders formation does not mean that the price will ABSOLUTELY collapse here. If there is some type of news that creates new excitement, the current slowdown in buying could be reversed. However, at this point, if that type of buying doesn't come in, it looks like Bitcoin could see a major drop in price from current levels.


  1. I'm out. 27.25 BTC at $750. I won't be getting back in, going to gold, taking delivery.

    Not bad for an $800 investment and running a few computers mining.

    Thanks R-dub.

  2. "Massive Head and Shoulders Formation Developing on Bitcoin Price Chart"

    This just in: A Massive Ass Formation Developing Over the Massive Head and Shoulders Formation...

  3. this just in...shitcoins going to shit. no, wait, shitcoin holders have been told and told time again. Where is honey badger defending this to the end? he'll be the last one out. you'll be able to tell it's him, he'll be the one with no shirt. buy gold and silver. if that's too expensive for you then buy nickels.

  4. This article yet again, shows that Wenzel doesn't understand Bitcoin. These charts are applicable only to commodities and not to Bitcoin. They are a twentieth century way of looking at the value of commodities superimposed on something that is neither a commodity nor money.

    These charts are the only point of entry for Wenzel, since he cannot understand Bitcoin on its own terms and its nature. He, and all the other Bitcoin bashers need to find another tool to understand and measure Bitcoin, because the conclusions they have been reaching by looking at charts is completely wrong, day after day.

    ZeroHedge, which comes from the same expertise heat map has said many of the same nonsense statements as Wenzel has; they also obsess over charts as if it were a stock. Now both of these outlets are continuously talking about Bitcoin, despite declaring it a fraud, a Ponzi Scheme, saying it can't work, saying its going to crash, etc etc.

    Its almost as if they do not understand that the internet remembers everything that you say. We can go back (and WILL go back) and point out your glaring errors. Its time to capitulate with a contrite mea culpa and ask for help understanding Bitcoin.