The Taylor Report-Bitcoin vs Gold vs Ethereum (1/24/19)

BITCOIN Missing In No-Action; GOLD In Balancing Act

Bill Taylor


By Bill Taylor, Contributor/Fintek Capital

We compare the price of Bitcoin, Ethereum, & Gold, using the CME Bitcoin Indexes (BRR & BRTI) and the CME Ethereum Indexes (ETH_RR_USD) & (ETH_RTI_USD) for reference.

1/24/19 Closing Prices:

Bitcoin:  $3,555.81 (-$12.45)
Ether:  $115.78 (-$1.42)
Gold:  $1,281 (-$2.00)
DJIA:  24,553.24 (-22.38)
S&P 500:  2,642.33 (+3.63)
Nasdaq Comp:  7,073.46 (+47.69)

Trading Summary Notes for Thursday, 1/24/2019

  • No action, no movement and it seems nobody cares. That’s the story so far this week for BITCOIN and ETH
  • This is NOT uncommon. After a disastrous 2018 (like, last year) the crypto markets are just dying from lack of interest. Trading money moves away to the new fast thing (equities are extremely volatile) and BTC and ETH just die
  • News from Davos has the predictable “bitcoin going to zero” OR “bitcoin going to $50,000”. Yawn! Both camps have been wrong for a long time so lets just ignore any crypto headlines
  • So, here we are back at the $3,500 level for BITCOIN and a little over $110 for ETH. And, may be here for a bit
  • BUT, back to fundamentals which are strong, and actually getting stronger, an continue to look forward
  • The longer BTC sits around $3,600 +/- the bigger the up move will be. Think of BITCOIN as a volcano; it is just having a pause in its long term eruption
  • Buying BTC $3,500-$3,700 (traders use stops at $3,250) and add to momentum buying above $4,200 looks like a good strategy. Near term target $6,500
  • ETH will follow BTC. If BTC goes to $4,200 ETH should see $150. If BTC reaches $6,500 expect ETH to see $200. ETH traders acquiring ‘down’ here should use $105 stops
  • GOLD is doing a “balancing act” here at the $1,280 level. Tipping a little under that number, and rising a little above that number
  • That actually is NOT a big drop from the $1,300 level it tested recently. Very interesting and stronger than I thought
  • Since GOLD did not break through, and above, that $1,300 barrier a retrenchment back to $1,255-$1,265 area may happen (wishful thinking?)
  • GOLD is in a new long term bull market so buying the dips is the strategy of 2019. Near term target is $1,400
  • LONG TERM BULLISH ON BITCOIN AND GOLD. NEUTRAL ON ETH

Current trading positions; LONG BITCOIN AND GOLD