Category: Finance

Is Bitcoin getting ready for another bullish rally?

After almost two weeks of sideways movement we have once again started to see “strange” movement on the BTC/USD pair. A massive dump yesterday, then a couple of hours of sideways movement followed by a massive bullish candle almost exactly the same size as the dump indicates that something is indeed brewing in the Bitcoin world. The recent Bitcoin rally that peaked around $520 USD per Bitcoin on November the 4th, may have just been a prequel for what’s coming.

Japan as the next pump

The previous pump was initially started by the Chinese investors when their economy ran into trouble. Now, Japan has also announced that they have fallen back into recession. Could the Japanese investors follow China’s lead and start a new bullish rally?

I think that’s very likely as gold and other precious metals are currently falling too, so the only seemingly safe move would be to buy Bitcoins given the upcoming block halving event and the current belief among most traders that this event will double, if not triple the value of Bitcoin.

It will only take a nudge

As we have previously seen with China, it doesn’t take much to initiate a FOMO (Fear Of Missing Out) where small, medium and big investors panic together as they see a huge bullish candle and start buying up the coin in order to make a quick profit. I predict these types of pump and dumps will become a lot more frequent all the way towards the block halving which, by the way, isn’t guaranteeing a Bitcoin’s increase in reality.

 

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What is BitGold and why should you care?

BitGold is a new online payment processor, sort of like PayPal, where your funds, transactions and savings are backed by physical gold instead of being just a number on the screen. The gold you own is stored in one of more than ten vaults around the world and if you want, you can redeem your physical gold at any time in the form of bullion. Founded in 2014 by Roy Sebag (former head of PayPal Canada) and Josh Crumb, BitGold is currently operating in 166 markets with over 320,000 registered accounts and growing.

What’s the significance?

The first I heard about BitGold was from a banner advertisement on some unknown website so my mind was already automatically ignoring it, but then I saw the terms “PayPal” and “former head” so I just had to take a look! What I discovered was pretty exciting- this new financial service is indeed owned by a well known guy, Roy Sebag, who was indeed the head of PayPal Canada.

I did some more research and found that one of the first investors that helped BitGold get started was Alexander Soros, the son of George Soros, who is a well known investor and currently among the top 30 richest people in the world. That’s significant because these guys know how to play the game unlike the owner of Liberty Reserve, for example. In fact my first thought was that BitGold was the new Liberty Reserve, but upon reading these facts, it’s pretty safe to say it’s not.

Back to the gold standard

Fiat currency is pretty much useless and is currently only backed by the fictional value we assign to it. The governments are printing out more money to deal with financial problems and thus creating inflation exponentially. This means that if you save up some dollars today, in about 10 or so years they are completely useless and have little to no value at all.

Picture of gold bullions stacked on top of each otherGold is offering a safer alternative to fiat money and although it has its own risks, it’s definitely safer to hold your savings in gold rather than in fiat currency because if you wanted to produce more gold, you’d have to actually go and spend resources on gathering it, instead of effortlessly printing out more and more of it. Makes sense?

The other main reason gold is safer is that human beings have traded with gold since the ancient times when we associated gold with gods and immortality and the value we have assigned to gold has come all this way to modern age and we still see it as a safe heaven in economical crisis (the price of gold always increases in difficult times).

Consider the two facts for a moment and then think why some of the richest people on Earth have suddenly invested so much in BitGold? To me, it’s a clear indication that the economy and fiat currency is about to break down. The signs have been there since 2008 when we first witnessed a crisis that, according to many economists, was the worst since the great depression in the 1930’s. Many economists and billionaires are expecting the next crisis to be far worse than the previous one, and that it could very well collapse the economy completely. It’s coming and there’s nothing we can do to stop it.

Bitcoin’s role in BitGold

The infamous cryptocurrency, Bitcoin, associated with drugs and criminals by the general public, is finally making its way out of the dark depths of the internet and into mainstream use. Companies like Dell, Amazon, Subway, Tesla and many others have started to accept Bitcoin as a form of payment for their services.

Image of bitcoins stacked on top of each otherNot only that, but Bitcoin has also received huge interest from investors and speculators recently, mainly because Bitcoin can now legally be treated the same way as money and the New York Stock Exchange has listed Bitcoin as an index, bringing even more transparency and trust to the market.

BitGold has realized the potential that Bitcoin has as well and so they now accept new deposits in Bitcoin which basically means that you can buy physical gold with Bitcoins.

Food for thought

We’ve already seen that Bitcoin prices increase exponentially when something bad happens in the financial markets. I’m talking about the recent Chinese yuan devaluation which led to a very strong bitcoin rally.

In essence, Bitcoin is starting to act as a save heaven for investors the same way as gold. It can’t be “printed” and you have to spend resources to make more of it. As time passes we need more and more resources to mine Bitcoins. Notice the pattern here? Now think whether or not there is a hidden agenda behind BitGold’s eagerness to trade your Bitcoins into Gold bullions?

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Bitcoin declines -20.5% after this week’s insane bullish rally

Bitcoin rallied all the way to $459,200 on the charts of BTC-E and even broke the $500 barrier on Bitstamp this week after the last weekly candle from October closed nicely above $304,300 resistance level indicating more bullish movement. It didn’t take long for a panic buying frenzy of massive proportions to take place shortly after that. Everyone wanted to get in early in fear of missing out.

Sudden decline

Bitcointalk was teeming with investors and traders speculating on the price of Bitcoin and the vast majority of people agreed that this is going to be a serious breakout. Even bigger than the last one (in 2013) and that we would see prices higher than a thousand dollars very soon.

What people didn’t realize was the resistance from 2014 at around $454 USD (remember, I’m almost always using BTC-E charts to do my analysis) that made the price bounce back down shortly after it reached there. On the hourly chart you can see BTC trying to break the resistance seven times in a row until finally giving in to the pressure of the bears and falling down further.

This along with a number of people from Bitcointalk screaming that this is the end of the bubble, fueled the bears even more and the price declined a total of -20,5% in just two days. Heck, even the Chinese quit pumping money into the cryptocurrency which of course meant that a lot of people just gave up altogether. In OKCoin many traders who went literally “all in” received margin calls all around from the sudden decline as they were hoping we’d be flying to the moon on the next rocket.

The bigger picture

It’s always fun to watch people buying in panic and then starting to sell as soon as someone claims it’s the end of the world. These people just can’t see the bigger picture which, at this point, clearly indicates we’re going to see another jump in value very soon. Maybe not next week, maybe not even next month, but soon enough. Remember, the halving is right around the corner and we are safely above the support of $304.300 so unless this gets broken, the long bulls are good.

It’s true that on a shorter time scale, we are currently inside a downward moving tunnel, but when you look at the daily, weekly and monthly charts, you will see there is no reason to panic just yet.

Here’s a cute chart:

bubble chart

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Bitcoin just hit the $420 mark and it doesn’t look like it’s stopping

The last time we saw Bitcoin around these levels was exactly one year ago in November 2014. We were just coming down from a down trend correction that peaked at $667,530 on the 25th of May as people were desperately trying to get rid of their remaining coins and we had no idea where it would stop. Then, less than a month later we finally hit the bottom at $200 where the price remained solid for almost a year, continuously dancing between $260 and $198.

Strong news to back it up

BTC USD Price November Rise ClimbThe first thing that comes to mind when you look at such a chart is obviously that someone’s trying extra hard to manipulate the prices for their own evil profit. I thought so too until I read the following news:

Bitcoin to become the 6th largest global reserve currency by 2030

The above article talks about how global banks are super hyped about the Blockchain technology that Bitcoin is running on and how they have already invested billions of dollars into it. They are finally taking this new technology seriously enough and who can really blame them? It’s a lot more secure and simply a better way to transfer funds than the traditional system we currently have. The article fails to show the relevance of Bitcoin in all this, because as you know, Blockchain is *not* Bitcoin, but there is more!

Chinese Yuan 15-20% devaluation by 2016

Since China is a global giant such news are definitely going to change a lot. The article talks about how China already devaluated their currency in order to help exporters and more devaluation is imminent. The current price rise of Bitcoin is almost entirely made up of money flowing into Bitcoin from China so people are already getting ready for a serious meltdown by the looks of it. This reminds me how Kim DotCom tweeted in August suggesting people to buy Bitcoins now and thank him later.

Regulated Bitcoin exchange, Gemini, set to launch

Gemini is the world’s first legal and regulated Bitcoin exchange with its headquarters located in New York, USA.

Cameron and Tyler Winklevoss, famous for their legal spat with Facebook founder Mark Zuckerberg, launched bitcoin exchange Gemini on Thursday. While the currency has received criticism for its role in exchanges such as online black market Silk Road, the brothers contend they have established sufficient safeguards to unlock its potential.

Bitcoin now treated legally the same way as money

Bitcoin can now legally be treated the same way as real money after a court ruling on Thursday which stated that Bitcoin transactions are exempt from VAT (value-added tax). That alone is enough to raise the price of Bitcoin considerably for obvious reasons. Even the oldschool investors who didn’t care about Bitcoin before are now looking into this tax-free investment.

Panic buyers fueling the price further

Given all the positive media fuss around Bitcoin lately and seeing the price skyrocketing in a matter of days has got a lot of people standing on their toes right now. The value of Bitcoin rose from $328 up to $420+ in a single day today as more buyers are jumping on the train, thus fueling the rally even further.

$500-$600 a very real possibility

In one of my previous posts I was quite skeptical about the price moving anywhere above the $450 area and even though I still believe we are going to see some resistance at the $454 area, it looks like Bitcoin is just getting started and we have only seen the tip of the iceberg right now. Basically any correction, especially the one that should happen around $454, will be a good entry point for a LONG position from now on.

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Free eBay Listing Description Design HTML Code Copy & Paste

When you are listing your items for sale on eBay you will realize that the default listing description editor has certain limits when it comes to designing your description. In order to really stand out from the competition, you need to have a decent looking item description for whatever it is that you’re selling. Feel free to use the following design without any limitations, just copy and paste!

Here’s the HTML code

The code has been moved here: ebay-listing-template.txt

Just copy everything in there and paste it in your eBay listing editor making sure you’ve got the HTML tab open and not the default editor.

Once you paste the code in HTML, you can switch back to the default text editor to change the text and write your own item specific details.

And here’s the preview

 

Title for item

Short description or tagline for item

Item Description

 

Item details here

 

Included in Package

 

What’s included with this order?

 

Shipping Information

 

Details about your shipping policy

 

Additional Information

 

Any additional information about this item or order details

 

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Bitcoin holding steady over the highest point ever in the year 2015

In my previous post about Bitcoin I said that breaking $300 was important, but that was only important because it’s a nice round number and human beings like these sort of things. The actual level that needed to be broken was $304,3 which was the highest point Bitcoin had ever been this year and sure enough it managed to not only break this level, but stay above it steadily for more than 24 hours. As of right now, Bitcoin has not been this expensive in the entire year of 2015 so things are looking rather good!

BTC USD 1D Chart Graph

Unlikely a pump and dump

Given the fact that this rally is happening slowly and steadily makes me very confident to say that we’re not dealing with a plain old pump and dump right now. Of course, I could be wrong, but a pump and dump usually happens a lot faster unless the whales are trying a more careful approach this time. Also we shouldn’t underestimate the buying power of China because apparently they’re the ones mostly responsible for this.

Price manipulation or not, I have closed all of my LONG positions for now because nothing can climb so high without falling down at least a little bit. The candles are indeed getting wider, but that’s all the more reason to believe that we are going to max out very soon.

We can see further indication of an imminent correction by looking at RSI which is currently showing a strong overbought market at 87.8%.

Highest value in 2015

Throughout the year we have witnessed Bitcoin climb from $230-$250 lows up to $300 and coming back down again. This happened on two previous occasions until finally in October 2015 we managed to break the old barriers and stay afloat above the highest point from July. As of right now Bitcoin’s value is the highest it has ever been this whole year.

Big expectations

A lot of investors from Bitcointalk.org are being overly optimistic about the current price movement and are throwing around numbers as big as $500, $600 and even higher. I unfortunately don’t share that enthusiasm because I can’t simply ignore all the technical analysis data which is showing the current price increase as nothing more but a mere correction in an overall down trend when looked at from the 1W and 1M time scales.

It is my estimate that if indeed we continue the bullish run, it won’t reach higher than $450-$475 before coming back down again hard.

Only one thing can change my estimate and that is when Bitcoin can successfully close this week’s candle outside the 1W Bollinger Bands which have been contracting since April. We could be dealing with a major breakout should this happen and given that we only need to survive one more day, it’s a very likely scenario.

Halving in less than a year

Bitcoin block halving is estimated to take place in less than a year from now and when it happens the rewards from solving a block are reduced from 25 to 12.5 per block. This is significant because it could very well be the end for Bitcoin as we know it. Why?

Because small time miners have been selling their Bitcoin mining rigs and/or switching to other, more easily mined cryptocurrencies for a couple of years now. What do you think will happen if suddenly the reward for solving a block gets halved when it’s already barely profitable to mine for most miners?

The most logical thing to happen is that the few miners that we have left are going to dump all their hardware, move to a more profitable crypto currency or quit mining altogether.

When exactly is the halving going take place? Nobody can say the exact moment, but Bitcoin Block Half has a fairly good estimate.

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Bitcoin’s struggle to break the $300 USD barrier continues

While it’s true that the Bitcoin, at least in theory, should continue to climb against the USD in the coming weeks and months, we are once again finding some serious resistance from the $300. The most recent rally found resistance around the $296 area to be precise and when we look at the overall movement of the crypto currency through the entire year of 2015, we will see that it’s not the first time this has happened.

BTC USD 2015 Year Chart 1W Time Frame

Breaking $300 is key

When you look at the chart above, you will immediately notice that we are right now testing the $300 barrier for the third time this year. First being in March and second, slightly higher move in July. It seems that the number 300 acts as a solid psychological resistance level where most of the day traders pretty much chicken out and start pulling their profits, thus lowering the value of Bitcoin.

Third time’s the charm?

It’s interesting to see that in July the buying power was slightly stronger than in March and although it ended with a more serious selling, it can still give us clues what to expect from the current rally. It’s very likely we are going to break the 300 this time around, but will it hold for good? Only time will tell. We can still stay quite positive just by looking at how green our current rally has been. Sure, we can expect some drawback soon, but right now it doesn’t look like it’s going to be anything drastic. Don’t forget the awesome fundamentals that are most likely responsible for the rally in the first place!

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Filed under: Bitcoin, Finance, Trading tipsTagged with: , , ,

Why the Bitcoin price started to rise in the second half of October?

Bitcoin has been struggling to stay above 230-240 USD for months ever since the bears washed away all of our expectations in August, but now, Bitcoin has started a new rally and what’s really exciting about this are the news. We have some serious and strong fundamentals to back up the technical analysis which is already indicating a clear breakout. Here’s why Bitcoin started to gain suddenly in the second half of October.

Corrupt FBI agent charged with extortion

Carl Force, a former FBI agent who was working undercover to help take down one of the biggest illegal marketplaces online, the Silk Road, was charged with extortion, money laundering and obstruction of justice. According to Reuters, In August 2013 Force conned the owner of Silk Road to pay him $50,000 USD in Bitcoins claiming he had inside information regarding the investigation.

Chinese banks interested in Blockchain technology

The banks in China have unofficially shown interest in the technology behind Bitcoin. A lot of rumors started to go viral from this to the point where some people believed China had unbanned Bitcoin completely which is still not the case. While private parties can hold and trade bitcoins in China, regulation prohibits financial firms like banks from doing the same. Nevertheless, such rumors will always fuel a good buying frenzy.

Gemini Bitcoin exchange launch

The Winklevoss twins who sued Facebook’s founder Mark Zuckerberg for apparently stealing their idea, used their “hard earned” millions to start a new and very promising Bitcoin exchange. You can read their official questions and answers Reddit page for more information.

Bitcoin tax-free in Europe

Bitcoin can now legally be treated the same way as real money after a court ruling on Thursday which stated that Bitcoin transactions are exempt from VAT (value-added tax). That alone is enough to raise the price of Bitcoin considerably for obvious reasons. Even the oldschool investors who didn’t care about Bitcoin before are now looking into this tax-free investment.

btc usd price rise 2015 octoberLong story short

Less Bitcoins will find their way into the wild now thanks to the corrupt FBI agent.

The Chinese and Europeans are hoarding the coins for their own personal gains bringing the price up even more.

Gemini is providing the first serious and regulated Bitcoin exchange service which will help build trust.

It’s still early to predict where the rally is going to find resistance, but it’s clear that we are only just starting to see Bitcoins true potential.

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yAds is a classifieds script with integrated Paymentwall system

Have you ever wanted to run your own profitable classifieds website, but didn’t know where to start? Now you can launch your own classifieds website in seconds with the yAds php script that supports Paymentwall payment gateway system. You can either collect direct payments or let your users complete offers instead and interact with your classifieds website.

How it works

Free posts are limited to lay at the bottom of the main index page and only ten most recent ones will be displayed. Users can however bump their classifieds by purchasing a bump through the Paymentwall gateway. You can also enable offers so instead of paying you, a user could simply bump their message by completing an offer! The bumping system adds a clever competition element to the website.

Because each email address is allowed only one advertisement, it makes it tedious to create a new email address every time so instead the users will be drawn to bumping their ads or editing the details.

yads screenshot classifieds website script paymentwall

yads paymentwall bump vipThe same system that lets your users bump their classifieds, allows them to order a VIP membership or make their announcement stand out from the rest using featured ads.

VIP users will have unlimited free bumps and their advertisement will remain on top of the website within a paginated area so even if they don’t continue to bump any more, their advertisement can be seen on older pages.

Modifying the look of featured ads is as simple as editing a single CSS class!

Ad supported

yAds supports a 120×600 skyscraper advertisement block in the sidebar and two 300×300 rectangle blocks in the footer. All of these can be easily modified because each ad block’s content is in a separate .php file. Simply copy and paste your own ad codes and you’re golden!

The same is true for navigation links, simply edit their corresponding files and the script will automatically use the menu throughout the entire website.

Users can edit ads

When your user first creates their own classifieds ad, the script will generate a random password that can be used to edit the ad details or update the photo. Without the password, the ad cannot be edited, but ordering a VIP status or bumping still works.

Easy installation

After setting up your database, it’s only a matter of browsing to the install.php file using your internet browser and the script will create all the necessary MySQL tables for you.

Fully responsive

The basic theme that comes with yAds is fully responsive and perfect for all mobile devices. Some other cool features include:

1. Fixed header when scrolling down

2. Navigation menu toggle button on small screens

3. Passes W3 HTML validation

4. Uses Schema.org markup for SEO

Custom designs possible

The structure of yAds is so simple that anyone with a basic understanding of CSS can modify the main.css to suit their needs. Custom designs are also a possibility, just ask!

How to order

For just $27 USD you will get a license for 1 domain name and free lifetime support should anything break. Payments are processed through PayPal and I will send you the script to your PayPal email address within 24 hours after receiving your payment. Click here to go to place your order.

You can check a live demo here: http://ynef.net/yads/

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Bitcoin price continues to tumble in the second half of August, 2015

Bitcoin started off August with a selling spree and while the price did stabilize for a week, we are now seeing even more intense selling taking place in the second half of August, 2015. As of right now all indication of a bullish market is now lost and the bears have won the battle.

Bitcoin value is decreasing

Bitcoin value decreasing daily chart bearishWhen you look at the daily charts you can see that the Bitcoin keeps testing for lower and lower points. The last mass selling on the 19th of August closed the market at $218,693 and even though the next day was bullish, there was not enough buying power to recover from such a deep drop.

We even touched the $211,050 area for a brief moment which likely indicates that another similar drop can happen in the coming days.

 

MACD and RSI oversold

MACD and RSI oversoldThe MACD and RSI indicators are both showing pretty extreme oversold conditions, but despite that Bitcoin is still falling further. This has lead me to believe that the suspicious drop to $194,922 was indeed some form of a price manipulation and the overall market has just started to react accordingly. It’s sad, but who can really blame the people when the Bitcoin price is so easily manipulated? All it takes is an entity with a big enough Bitcoin wallet.

Who owns the most Bitcoins? The FBI of course. We don’t want to say it, but we’re all thinking it… oh and just FYI, I am not blaming the feds for this one, it’s more likely the BTC-E who is responsible for the last insanely fast price drop. It didn’t happen on any of the other exchanger charts.

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Filed under: Bitcoin, Finance, Trading tipsTagged with: , , , , ,