Bitcoin Daily Forecast

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The Bitcoin market is now parabolic and looking very dangerous to say the least. Anybody who has traded this market before has seen this story, the market starts going parabolic for several days in a row, as “fear of missing out” takes over. Unfortunate, this almost always ends very poorly and at this point if you are not already long of this market, all you can do is wait for value.

I believe that we are seeing the bubble replayed itself, as Chinese are more than likely trying to sneak money out of the country right now. It doesn’t really matter what the reason is, the reality is that we have gone straight up for a couple of weeks now and are 30% higher than we were just a few days ago. This is not normal, nor is it healthy. If you remember a couple of years ago, there were suddenly thousands of gurus all over the place teaching you how to become rich overnight. We aren’t quite to that fever pitch yet, but they are most certainly coming.

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I’m the first to admit that I am not a believer. But at this point, it doesn’t really even matter whether the market ends up producing a useful coin or not, the reality is that markets don’t move like this very long. I’m not ready to call it a full-blown bubble yet, but we are certainly starting to look a lot like that. At this point, I suspect that a significant pullback is coming, and it’s not too far out that we will see some type of correction along the orders of 15% in a single day. That’s how Bitcoin works. Recognize that if you are not already in this market to the upside, you have missed the move. Admit that, and simply wait for value. That value can be found at the various levels marked on this chart.

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Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.