The Taylor Report-Bitcoin vs Gold vs Ethereum (1/21/19)


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. 1/21/19 Closing Prices:Bitcoin:  $3,536.34 (+$12.76) Ether:  $116.34 (-$1.23) Gold:  $1,278 (-$5.00) DJIA:  24,706.35 (+336.25) (Friday close – closed Monday) S&P 500:  2,670.71 (+34.75) (Friday close – closed Monday) Nasdaq Comp:  7,157.23 (+0.00) (Friday close – closed Monday)Trading Summary Notes for Monday, 1/21/2019

  • A bit of firming last week, a nice ‘jump’ up on Saturday and then a Sunday “hit job” on BITCOIN and ETH. What? Somebody doesn’t like the “day of rest?”
  • And here we are back at the $3,500 level for BITCOIN and a little over $110 for ETH
  • Obviously the current interest in cryptos is very low and a large buy or sell order will move the market since liquidity is reduced
  • OR, if you are paranoid (like I am) “someone is trying to keep the price of BITCOIN down so as to accumulate at lower prices. (Russians?….lol)
  • So, lets get back to fundamentals (which are strong) and 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 finally backed off the $1,300 barrier…..for now. Looks like it just got “tired” at the $1,290-$1,295 area and when the dollar ticked up selling came in
  • Since GOLD did not break through, and above, that $1,300 barrier a retrenchment back to $1,255-$1,265 area may happen
  • GOLD is in a new long term bull market so buying the dips is the strategy of 2019
  • Near term target is $1,400

Current trading positions; LONG BITCOIN AND GOLD