Bitcoin just reached 3,000 USD!!!! This is unbelievable and amazing. I am very happy that I recommend Bitcoin to my readers below 375 USD! I remember very well all the hate emails I received back in December 2015. Now in retrospective besides my proper technical analysis this was a great contrarian signal. If you followed my advise your Bitcoins are currently up around 585% !!!
I also recommended Ethereum below 8,00 USD. Now this magic altcoin costs 357 USD – a gain of more than 4400%!
The cryptomania is upon us and the world of money and banking is facing a huge shift. Cryptocurrencies might indeed break up the corruptive and unjust paper money system ruled by a small elite of banksters. As I have stated many times the blockchain has been a huge technology breakthrough and I am very sure we will use some form of crypto money in the future. Which one of the now more than 800 available cryptocurrencies will be the winner is unknown and pure speculation. Most of them will go to zero.
But make no mistake. Although Cryptocurrencies are extremely volatile they are a great diversification. As with any investment you have to buy low and sell high. Right now is not the time to jump on board although the parabolic run-up in Bitcoin could continue for a couple more months and push all the other altcoins higher too.
My favorite cryptocurrencies are DASH and STEEM. Especially STEEM looks still cheap. Unfortunately DASH and STEEM have just seen a strong up move so I can not recommend to buy into the current strength. As soon as we get a reasonable dip I will write a buy recommendation.
Coming back to Bitcoin. Since the recent new alltime high Bitcoin has had a sharp pullback. It could be that Bitcoin is now in the process of building yet another ascending triangle formation. I think we should know within the coming 2-3 weeks.
The next fibonacchi extensions are sitting at 3,232 USD and 3,827 USD. Very likely Bitcoin will reach both of those targets but not immediatly. The ascending triangle formation could take up to 2 or 3 months.
Over all there are no technical signs that the parabolic rally has already topped. It looks more like a consolidation/correction within a strong uptrend. I recommend to move your stopp towards the recent low at 1,800 USD and secure some massive gains.