The Taylor Report-Bitcoin vs Gold vs Ethereum (1/14/19)


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. 1/14/19 Closing Prices:Bitcoin:  $3,594.27 (-$16.91) Ether:  $120.56 (-$3.03) Gold:  $1,292 (+$5.00) DJIA:  23,909.84 (-86.11) S&P 500:  2,582.61 (-13.65) Nasdaq Comp:  6,905.92 (-65.56) Trading Summary Notes for Monday, 1/14/2019

  • After suffering a bad week last week (dropping below $4,000) it appeared that the weekend might get a bit “nasty” for BITCOIN…………..and ETH
  • Both BTC and ETH firmed up, held steady, “treaded water” and then turned higher in late Monday afternoon trading (after London ‘close’)
  • Another bottom? Will BITCOIN ever resume a long LONG climb? Will BITCOIN ever see $20,000 again? Or $50,000? The answer is YES! When? That’s the big question and, lets be clear. NOBODY knows
  • With more and more institutional infrastructure being built out, and regulators dragging their feet to establish rules, timing is hard to forecast.
  • Taking a LONG term view on BITCOIN (and to a lesser extent on ETH) acquiring BTC “down” here should be very rewarding
  • 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
  • Lets be really clear; GOLD is in a new long term bull market. It appears it will break above $1,300 at any time. Near term target is $1,400
  •  A close above $1,305 would be very bullish
  •  A slight pullback in GOLD to $1,265-$1,275 would not be unusual. Buy the dips

Current trading positions; LONG BITCOIN AND GOLD

Bill Taylor is Managing Partner at Fintek Capital & a frequent contributor