The Taylor Report-Bitcoin vs Gold vs Ethereum (1/17/19)


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. 1/17/19 Closing Prices:Bitcoin:  $3,600.43 (-$15.67) Ether:  $120.37 (-$2.20) Gold:  $1,292 (+$1.00) DJIA:  24,370.10 (+162.94) S&P 500:  2,635.96 (+19.86) Nasdaq Comp:  7,084.46 (+49.77) Trading Summary Notes for Thursday, 1/17/2019

  • BITCOIN lovers, enthusiasts and buyers have gone into hiding. If you are bullish (I am) that’s the bad news. The good news is the sellers seem exhausted
  • Seriously, the lack of interest and being front page news is actually good. When nobody cares about BTC and ETH (and other cryptos) trading slows and neglect sets in
  • This lack of interest and news can last a while. Remember, GOLD suffered from neglect  for well over a year before it finally picked up steam (like…..currently)
  • I don’t think that will happen to BITCOIN or ETH because there is strong pent-up demand in this new asset class
  • 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 has been testing the $1,300 barrier for a few weeks now. It has been ‘backing and filling’ while preparing for a big break above that level
  • I would have expected a bigger pullback Not giving NEW buyers much of a chance to get in
  • 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

Current trading positions; LONG BITCOIN AND GOLD

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