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.