That’s the price target master trader Jeff Clark just put on bitcoin.
Today, the world’s first cryptocurrency trades at $8,684.
So $13,000 would be a 50% rally from here.
As regular readers know, one of the big-picture investment trends we track here at Legacy Research is the buildout of the crypto economy.
In short, we believe that much of the world’s economy… its financial system… and its investment markets will run on blockchains (the decentralized networks underpinning all cryptos).
Teeka Tiwari is one of our go-to crypto experts. And he’s been calling for higher prices in 2020. (Catch up here.)
With these two experts singing from the same hymn sheet, bitcoin is one of the top speculations as we head further into the new year.
It rallied 268% from the start of 2019 to its peak for the year in June.
Since then, it’s lost about half its value.
But yesterday, Jeff noticed something in bitcoin’s price charts that could lead to 50% gains ahead.
Here’s the chart that caught his attention. It’s of the NYSE Bitcoin Index, which tracks the dollar price of bitcoin.
Here’s Jeff on what it means…
After several months of trending lower, bitcoin looks ready to rally.
The King of the Cryptocurrencies lost about half of its value in the back half of 2019. It bottomed in December at about $6,600 per coin. But since then, it’s been stealthily moving higher. And the action this week sure looks bullish to me.
It tracks a key indicator he uses called the 50-day moving average (MA).
And right now, it’s signaling a bullish trend ahead. Jeff again…
The 50-day MA helps define the intermediate-term trend of an asset. If an asset is trading above the line, then the trend is bullish. If the price of an asset is below the line, then the trend is bearish.
As you can see from the chart, the price of bitcoin just popped back above its 50-day MA. That’s bullish.
The 50-day MA isn’t the only indicator telling Jeff bitcoin is about to take off. Here’s what he said about the red arrow on the right side of the chart…
More important, though, is the action in the shorter-term moving averages. The 9-day and 20-day exponential moving averages (EMAs) are on the verge of crossing above the 50-day MA. This sort of “bullish cross” often signals the start of an intermediate-term rally phase.
Take a look at the chart again…
Now, look at the spot the red arrow on the left is pointing to… around February last year.
That was the last time the price of bitcoin popped above its 50-day MA.
It was also the last time the 9-day and 20-day EMAs completed a bullish cross. And it marked the start of a four-month rally. The price of bitcoin soared more than 200% during that time.
But Jeff doesn’t expect quite such an explosive move this time…
I don’t think we’ll see the same sort of move this time around. A 200% move in bitcoin from today’s prices would put it well above its all-time high. The technical picture just doesn’t support that right now.
But if the short-term EMAs can cross above the 50-day MA, then bitcoin is headed higher.
Once that happens, a move up to last year’s high near $13,000 is possible. That would be a gain of more than 50% from Monday’s closing price.
Jeff has a habit of getting these calls right.
He sent out a bullish bitcoin alert to his Market Minute readers in February 2019.
That was right before last year’s bitcoin rally kicked off. The crypto gained 265% before its peak last June.
Now, he sees another big move in the offing.
Combined with Teeka’s bullish outlook, that means now is a great time to buy some bitcoin as a speculation.
Just remember, as with any other speculation, you never want to risk money you can’t afford to lose.
Always keep your position size small. If you’re just starting out, Teeka recommends to keep your stake to about $200 to $400. If you’re a larger investor, he recommends a stake within the $500 to $1,000 range.
You can find out all the steps you need to take to buy bitcoin in our free special report here.
And make sure to check out the insight from Teeka I mentioned up top. It’s a great explainer on the fundamental reasons bitcoin is headed higher from here.
He explains why decreased supply in the crypto and surging demand from Wall Street will drive bitcoin in 2020 here.
Regards,
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Chris Lowe
January 16, 2020
Delray Beach, Florida
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