The Quick Takes Pro blog by Michael Kahn, CMT about anything that might affect your portfolio.
Wednesday, December 4, 2013
After doing the research for my Barron's Online column "Bitcoin, Gold and Tulips" I thought more about the charts I saw. One of them is in the upper left corner of the graphic shown here - courtesy Elliott Wave International.
The chart of bitcoin sure looks like the left hand side of each of these charts but how high is high? How far into a mania is it really?
Here is another chart I ran in the column, It shows bitcoin through Monday of this week. See the resemblance? But I ask you, is this the entire mania? Or is it half way up? or 25% up? Or 61.8%?
Basically, we cannot know where we are on the mania curve and that is what makes it so dangerous for bulls and bears alike.
If you play bitcoin, perhaps you should wear a seat belt.