- The bitcoin Accumulation Program is a process attempting to assess and communicate the attractiveness of bitcoin’s price. Basically, we are trying to determine good times to buy or add positions in bitcoin and to help understand what is happening with the price of bitcoin on a weekly basis.
- The goal of this approach is to help make investors feel more comfortable with a long-term perspective when approaching a very volatile asset by providing a logic-based accumulation approach. Read last week’s analysis here, and for more overall information on our bitcoin Accumulation Program, watch our overview video here.
What the Indicators are Telling Us This Week
- Trend: The Trend Score (middle study, yellow) is clearly negative
- Cycle: Signaled a potential bottom (bottom study, green line)
- RSI: RSI (top study, blue line) was severely oversold and now still weak
- Distribution Range: bitcoin Is clearly out of the multi-year uptrend defined by the range
Chart of bitcoin ($BTC) produced by Kevin Grimes
Conclusion: The song remains the same for bitcoin without any meaningful progress this past week, up about 1% from last Friday’s close. Trends are quite negative while the Cycle Indicator has been signaling a potential bottom for a month, unsuccessfully. A break below the low close of $85,127 would be a significant technical negative. We recommend letting this bottoming process work through before putting substantial capital to work. Continue to watch and wait for a turn here as an opportunity to add positions in bitcoin.
OVERALL SCORE (1 – 7 Scale): 2 // Risk aversion favored – wait for better opportunity
read Previous Bitcoin Diaries
Important Disclosures:
This Cryptocurrency article is for informational purposes only. Past performance is not indicative of future results. Crypto is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography (i.e., a method of protecting information and communications with codes) to secure online transactions. Unlike conventional currencies issued by a monetary authority, cryptocurrencies are generally not controlled or regulated, and their price is determined by the supply and demand of their market. Cryptocurrency is currently considered to be a speculative investment. Please Note: Investment in cryptocurrencies is subject to the potential for liquidity constraints, extreme price volatility and complete loss of principal. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Grimes. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.grimesco.com.
