Recently, we have featured the work of technical analysts from the early 1900s. The first part is the work of Richard Wyckoff. That analysis shows Bitcoin (BTC) has entered a period when it can trend sharply higher.
We then took that work and combined it with the work of Jesse Livermore. Livermore is featured in a classic trading book, “Reminiscences of Stock Operator.” Livermore has a construct where an upward sloping diagonal range precedes a parabolic up move. The construct is shown in Figure 1.
Looking at the four-hour chart of Bitcoin (BTC), we have noticed that the Livermore analytical framework is applicable to Bitcoin (BTC). Figure 2 shows that Bitcoin (BTC) is only just starting its parabolic up move.
Bottom Line: The uptrend is our friend and so is Livermore’s work. If this construct continues to work, $7,500 could be the upside target for Bitcoin (BTC). The move to $7,500 could unfold sooner than people think. So, it may not be too late to get in on the Bitcoin (BTC) rally.
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