Bitcoin, DJI and Parabolic Patterns – This is how they usually end

Technical Analysis and Trading Ideas

Bitcoin, DJI and Parabolic Patterns – This is how they usually end

 

Bitcoin, Dow Jones Industrial and Parabolic Patterns – This is how they usually end


 

 

 

The first example is Intel, during the Tech Bubble. 


What you see is a parabolic pattern, trend angles that increase in steepness till 77 degrees, then a quick drop and a slightly higher high and then…..a 67 degree plunge.

 

 

 



 

 

 

The second example is the DJI 2004-2009 (left side) vs DJI 2015-2019. 


After the 60 and 68 degree angle, we get the 77 degree angle. And then once again a slightly higher high, followed by a 67 degree decline.

 

 

 



 

 

And the third example is Bitcoin


Currently, Bitcoin is in the 77 degree angle trend, almost going vertical. And then, at some point, gravity will kick in (my guess is in the year 2018).

Now, what do you think?  These charts (–> patterns) all look the same to me and if these patterns keep aligning, then that means stocks and cryptos will crash in 2018.

It’s impossible to say beforehand where the trend will change, so I’m not even trying (anymore ;)). What I do know is that this is the time to manage your equity and crypto exposure (risk). So I closed 75% of crypto positions, decreased the total portfolio weight to 5% of assets, as I’m satisfied with the extraordinary returns in 2017.

I hedge my equity exposure with the help of my  eToro trading account. If you want to follow my 2018-2019 strategy (stocks and cryptos down), then feel free to sign up for a free account at eToro.

My total portfolio, and strategy for 2018-2019 and 2018-2033 is explained here.

Enjoy the day!

Cheers!

Edwin.


 

 


 


ps. I started a new project, for and by my international students.

We analyze upcoming ICO’s and when we see a project that we like, we contribute.

We now have 10 contributions, and our goal is to build a portfolio of 100 tokens that generate a periodic cash flow (Portfolio of 100).

Feel free to follow our ideas: CryptoRatingDesk.com

One Response

  1. Cleveland says:

    You were dead on! BTC hit 8700 on Feb 1st, almost exactly as you predicted in that last chart. I know the DJI could go a little higher but the sentiment is that the market is still a “weak positive” so I decided to sell out of the more aggressive funds while there are still buyers. Was I too soon? Too soon to extract full benefit from the ultimate market peak/pivot, maybe, but not too soon to have made a smart move. The political situation of the world is also a concern at this point — as one article I was reading mentioned, the political climate makes a black swan event not entirely unlikely…

    In the meantime I’ll be looking to get back into BTC at the bottom, possibly after the SEC/CFTC regulatory talks on Feb 6th; since US represents a major portion of the crypto market, a negative response could drive the price to the floor like in late ’13/early ’14. In fact, as of today I see a lot of similarities to the early 2014 crash, which puts rock bottom right around 3500 as you predicted. Still, it’s never a carbon copy of the past so we’ll see how it goes. I still think a target of at least 50k could be reached this year, especially once more big money enters the markets…a

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