The man who predicted bitcoin’s last two major moves just made a third call…
Back in February, master trader Jeff Clark did something extraordinary.
Jeff normally trades options. But he spotted a familiar chart pattern in bitcoin.
Here’s the chart Jeff was looking at…
Bitcoin had just been through the brutal “Crypto Winter” bear market. Peak to trough, it had plunged 84%.
All but the most hardcore crypto fans had given up. They’d simply moved on to other things.
But as Jeff noted at the time, that’s usually when a beaten-down asset starts to rally.
And he made a …
The last time this chart displayed a similar pattern was back in November. Bitcoin had chopped back and forth in a tight trading range for a few months. The moving averages [blue, red, and green lines on the chart above] were coiled together. And we got a big move – lower.
It wouldn’t surprise me to see bitcoin trading back near its December high of about $4,200 within the next few weeks.
Bitcoin was trading at $3,621 at the time.
It rallied to $4,200 within four weeks. And it kept going all the way to $13,796 at the end of June.
Now, Jeff is back with another big call – and this time it’s short-term bearish for bitcoin.
But before we get to that…
Have you saved your spot for Jeff’s event?
At 8 p.m. ET, Jeff will announce his first-ever stock-trading strategy.
It pinpoints when bullish energy is building in some of the most explosive stocks in the world.
And during 18 months of live testing this strategy with his own money, Jeff booked wins of as high as 230%, 318%, and even 601% by buying and selling small-cap stocks.
In some cases, these kinds of returns happened over just a few days… even a weekend.
I (Chris) first saw Jeff unveil his strategy in Miami…
At a closed-door meeting of Legacy Research executives and analysts at the luxury EDITION Hotel, Jeff first revealed his new strategy back in April.
Everyone was impressed by the results. So Jeff got to work figuring out the best way to help you profit off his breakthrough.
And when he revealed the finished product to the more than 300 Legacy readers who attended last month’s Legacy Investment Summit in Carlsbad, California, the effect was the same.
So, before we get to Jeff’s latest call on bitcoin, I urge you to sign up for tonight’s broadcast by going .
I know you’ll thank me for it.
Now, back to Jeff’s latest call on bitcoin…
As Jeff’s readers know, he turned bearish on the cryptocurrency at the end of August.
And he warned that bitcoin was headed lower over the short term.
Here’s how Jeff started the of his free Market Minute trading newsletter…
The world of bitcoin has been quiet lately.
The King of the Cryptocurrencies hasn’t been doing much of anything lately. Its price has been stuck between $10,000 and $11,000 per coin for the past few weeks. And that lack of activity has quieted all of the formerly vocal financial TV talking heads.
But they’re not going to stay quiet for much longer. Bitcoin looks like it’s on the verge of another BIG move. And unlike the big move higher we were looking for back in February, the setup today looks bearish.
Bitcoin was trading at $10,203 when Jeff made his call. Today, it trades at $8,237.
That’s a 19% drop.
Jeff now predicts bitcoin will hit $7,000 before the next bull run kicks off…
This next chart shows how he sees this bearish move panning out…
If Jeff is right, you’ll get the chance to pick up bitcoin at a 15% discount from today’s price.
Remember, this is a short-term call…
Here at The Daily Cut, our main mission is to identify trends that you can profit from over years… even decades.
And the buildout of the crypto economy is one of the most profitable of these trends on our radar right now.
That may sound strange, given that we see lower prices for bitcoin over the short term.
But nothing goes up in a straight line. That’s particularly true of bitcoin. And if you look beyond its market price, bitcoin’s fundamentals are strong.
Sure, there have been some setbacks…
On October 9th, the Securities and Exchange Commission (SEC) – the main U.S. stock market regulator – rejected another proposedbitcoin exchangetraded fund (ETF).
There’s also the , Facebook’s corporate crypto project.
So far, seven of Libra’s corporate backers have pulled out of the project. And folks in Washington are on the warpath to stop Facebook from getting Libra off the ground.
But if you look “under the hood,” a different picture of where bitcoin is at emerges.
It’s all in the next three charts…
If you’ve been over at our Palm Beach Daily e-letter, they’ll be familiar.
But they’re also key to understanding bitcoin’s future. So they bear repeating here.
The first tracks the number of blockchain wallet users. This gives you a rough idea of how many people use cryptocurrencies.
As you can see, the number of wallets has risen 34% this year, from 32 to 43 million.
The next chart is of the number of bitcoin transactions per day.
After a drop last year, that’s trending higher, too.
Finally, you’ve got bitcoin’s “hash rate.” It tracks the activity of bitcoin “miners” (the folks who verify transactions on the network). And it’s widely seen as a good indicator of the health of the bitcoin network.
As you can see, it’s near all-time highs.
In other words, if you look past the negative price action and focus on the fundamentals, you’ll see bitcoin’s long-term future is bright.
And as Jeff has been telling his readers, $7,000 is a great entry point for long-term bitcoin bulls.
Before we go, a final reminder about Jeff’s event…
I’ve been spilling a lot of ink on Jeff here at the Cut lately.
But that’s because I find his chart insights invaluable. And I know you will, too… especially after tonight’s event.
And don’t forget… when you sign up you’ll also get access to Jeff’s Stock Trading Academy. It’s packed with trainings, tutorials, and instructional videos.
That’s worth signing up for alone.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.