Tag: bitcoin bubble

Bitcoin just tested the $400 USD area again

Ever since my last post about Bitcoin more than two weeks ago, I have been keeping a close eye on the price movement and the news as well. Judging from the chart alone, it’s highly possible that Bitcoin will soon break the $400 resistance level, because it has tested it twice already in the last two days and today’s hourly candle closed a lot closer to this level than the previous. The technical analysis is definitely showing an increasing pressure from the bulls, but that’s not all! The news have been very favorable as well.

bitcoin testing 400 usd area twice in two days

Visa is Testing Remittances on the Bitcoin Blockchain

Visa Europe became the latest enterprise financial institution to announce a blockchain proof-of-concept this month, when it revealed it was working to leverage the emerging technology for remittances.

Report: Barbados Central Bank should hold Bitcoin

Two Barbadian economists have concluded that the country’s central bank may want to consider holding a small amount of bitcoin as part of its portfolio of foreign reserves.

Former assistant of President Obama joins Bitcoin Miner Bitfury

I believe in the blockchain and the transformation power of this technology. And you should too. In fact, I believe in the blockchain so much that I just left my fantastic job working for Edelman … to take on the role of global chief of communications at BitFury.” Source: http://www.coindesk.com/former-white-house-staffer-joins-bitcoin-miner-bitfury/

Bitcoin bulls just getting started

The above three news were just a few examples how seriously people are starting to take Bitcoin and its underlying technology, the Blockchain. Deutsche Bank, for instance, has claimed that the Blockchain technology will become mainstream within just the next decade.

I’m a Bitcoin permabull myself and I strongly believe that we can break the $400 barrier this year. Perhaps there’s not enough power to test $500 within just two weeks, but we should be getting there in the first part of 2016 as well. See you on the moon!

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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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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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