Tom DeMark: The Good Fortune of Bitcoin May Not Last Much Longer

Bitcoin has been doing quite well as of late. In recent days, the currency has hit a new all-time high and has shot beyond the $22,000 mark, bringing the world’s number one cryptocurrency by market cap to its most bullish peak yet.

Bitcoin Is Doing Well, But Could This Streak End?

However, while the asset appears to be surging, many are worried that the positive waves making their way through the industry won’t last much longer. Some analysts are warning their followers that things are going to take a nasty turn in the coming weeks and months, and that the time to prepare is now.

One such person is Tom DeMark, a technical analyst who is convinced that bitcoin is on the verge of retreating into bearish territory. In a recent interview, he says technical charts are showing signs of bitcoin’s incoming setback, and he’s warning investors before they reach for the stars with crypto.

He comments:

Although it appears treacherous to take such a stance, here is what our combined timing models are suggesting about bitcoin at this time… The prior instances in which this long-term model has spoken include the precise December 18, 2017 high, the precise low day December 14,2018, and then the precise June 26, 2019 high day.

He says that bitcoin has exhausted all its present rising power, and points to these high and low dates as previous warnings for the currency’s “retrenchment.”

He continues to explain:

If one were to add 9,430 points to the June 26, 2019 high, it projects upside to 23,288, which is in the zone in which the current market is trading. Obviously, there is no certainty in the forecasting business and often it is prudent to await confirmation of the completion of a trend rather than making a bold prediction. Nevertheless, awaiting a close less than the close four or five days earlier and next day downside follow through would sacrifice opportunity.

Maybe His Thoughts Are Incorrect…

While we’d like to avoid confrontations like this, it’s hard not to take DeMark’s words into consideration. When bitcoin appears to be on a strict rise, it’s usually during these times when the currency takes a turn for the worse. This occurred in 2017, when bitcoin struck its then all-time high of roughly $19,000+. Many traders believed that the currency had developed a newfound maturity that would take it to the moon, but this wasn’t necessarily meant to be.

The currency wound up losing roughly 70 percent of its value within 11 months, and the spike appeared to be something of a fluke, though at press time, it is widely argued that the current bull run differs from the one in 2017 given that it is powered mainly by institutional players rather than retailers. With this newfound support, bitcoin could wind up hitting all sorts of new top-tier positions.

Source: Read Full Article