Tag: bitcoin

Bitcoin gains 1.36% within 1 hour after bullish news from Glenn Hutchins

Bitcoin gained 1.36% earlier today rising from $442 to $448 in just one hour right after Glenn Hutchins, a Federal Reserve Bank of New York board member and investor, came forth with bullish news about Bitcoin and the BlockChain technology. In his speech he drew a bold parallel between Bitcoin and the Internet and, among other things, mentioned that he has bought Bitcoin himself and is currently investing in various Bitcoin companies.

Bitcoin hike from 442 usd after Glenn Hutchins news

We didn’t reach $500… yet

In the last weeks of April there was a lot of fuss on Bitcointalk about the possibility of the price reaching a whopping $500 USD mark on or before May 1’st, but as we all now know, this somewhat feasible dream was instead met with a steady two-day price decline on the 27th and 28th of April where the value of Bitcoin fell sharply a total of -7,25%.

Impact of bullish news

Glenn Hutchins is a man to be taken seriously and we have already witnessed that the first wave of bulls have returned, albeit cautiously for now.

When a board member of a Federal Reserve Bank of New York comes out in the open and says that “hey, I’ve bought Bitcoin myself and I will start investing in Bitcoin companies“, it’s not that far-fetched to think that at any moment now the herd will follow.

$500 in May or early June?

This, along with the fact that an event called “the halving” is right around the corner, leads me to believe that $500 in May is a very strong possibility especially because in the last few days the price has fallen just enough for it to look delicious again for the bulls.

After all, Bitcoin is an asset more closely controlled by the fundamentals than anything I’ve seen before. It’s true that technical analysis works to a certain degree, but every time news like this comes out, Bitcoin simply goes nuts!

It’s like a feather in the wind that’s blowing from many different directions and that being said, I believe this month and the next will be a very interesting ride to either simply observe or be a part of directly.

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Bitcoin just flash crashed -10.93% and then recovered again… twice in 3 hours

Something strange just happened to the price of Bitcoin where it rapidly fell from $430 to $383 in just an hour and then recovered again only to go on round two just an hour of standing relatively still. At least that’s what the Bitstamp charts are saying. Have a look:

Bitcoin just crashed but recovered shortly... twice

What’s happening on Bitstamp?

Well, something had to cause this and I have to admit I jumped a little when I saw this just now, but it appears it only happened on Bitstamp as Bitfinex, Kraken, CoinBase and BTC-E seem to be completely oblivious about it.

Still, knowing that there are a lot of traders out there who only rely on Bitstamp data, I can’t help but wonder if this incident can fuel a significant panic dump very shortly?

It certainly doesn’t look natural/unintentional, but right now all we can do is wait and see if anyone can shed some light on the matter. I guess it’s time to lurk on the speculators forum again…

21 hours later

This is an update 21 hours later and looks like it happened again a third time:

Another flash crash and flash recovery from Bitcoin on Bitstamp Sunday

More and more bears are showing up as we speak so I don’t think this is going to hold for much longer.

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Filed under: Bitcoin, FinanceTagged with: ,

Is 420 the new floor for Bitcoin?

Bitcoin sure likes to blaze it or so it would seem. The price is back around the 420 area where it reached in November 2015. Ever since the Mike Hearn news, Bitcoin has been struggling to break the $400 resistance, but it finally managed to do so just in time for Valentine’s day and while most speculators on BitcoinTalk tend to agree that this is the new floor for the crypto, I’m a little worried about the head and shoulders pattern that’s forming on the hourly charts.

Head and shoulders on 1H

As I’ve stated before I’m a Bitcoin permabull and would love to see the cryptocurrency rise to an all time high this year. I was super excited to see the breakout on Valentine’s day, but it’s possible that this is about to turn south real quick due to the formation of a very popular chart pattern known as the head and shoulders. Have a look at the chart below to see what I mean.

head and shoulders pattern on bitcoin

A great source for learning, Investopedia, explains it pretty well. Basically if the neckline is broken, we can expect a more serious downward movement to take place. Right now it doesn’t look like the neckline is broken just yet, but it’s definitely getting closer due to the selling power increase as indicated by the red bars at the bottom of the chart.

Fundamentals bearing more weight

There’s been plenty of good news on the media surrounding Bitcoin lately and it’s the main reason the cryptocurrency is rising right now. I’ve also noticed that the technical traders are getting burned more often than before with not just trading Bitcoin but pretty much everything else.

For example the popular forex pair EUR/USD surprised many seasoned technical traders this year with a massive surge upward and while I’m not qualified to really speculate on the matter, I saw a very influential trader post on the Forex Factory forums that technical trading is getting more and more difficult to the point where it no longer makes sense to be involved at all. So perhaps the 2016 financial crisis will remove most technical traders out of the equation for Bitcoin as well?

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Bitcoin slowly recovering after Mike Hearn news in January

In the first weeks of January 2016 a leading Bitcoin developer Mike Hearn announced to the world that Bitcoin is dead and broken. In his article he talks about how the community has failed and how the Blockchain technology can’t reliably handle too many transactions at once. He also mentions that the market is controlled by Chinese miners and just two miners control more than half of the entire hash power. Naturally this announcement caused a network wide panic as people were worried Bitcoin is done for good this time.

BitcoinsBitcoin’s death greatly exaggerated

After the usual media shitstorm and Bitcoin selling marathon came along the CNBC and announced to the world that Bitcoin’s death was mostly just exaggeration and even though Bitcoin has been officially declared dead more than 90 times in its relatively short lifespan, the cryptocurrency will rise and continue moving forward just like it has always done.

Moreover, various conspiracy theorists claimed Mike Hearn to be a shill working for MI6 or some other major corporation, perhaps even the central banks. While unlikely, we can’t really rule anything out at this point because one can’t help but wonder whether Mike Hearn profited from the Bitcoin selling that he himself initiated. It’s quite possible that the first wave was in fact from his own Bitcoin stack which he dumped on the market.

Price stabile below 400 USD

After the Mike Hearn news Bitcoin’s value on most markets started to rapidly fall as traders were trying to get rid of a “broken” currency as fast as possible. Eventually the price found stability a little above $360 USD per Bitcoin and has since then been hovering in the sub 400 area for a month.

From the 2nd half of January until mid February 2016 the price of Bitcoin fluctuated systematically between $390-$365 indicating that the speculators were still around and hadn’t abandoned ship completely. The past month has been a very profitable time for the technical traders because of the market’s rather predictable movement.

Testing $400 on Valentine’s day?

It’s Valentine’s day today and interestingly the price of Bitcoin has just increased from $380+ all the way up to $399 within just a few hours. There’s just one more dollar to go before we test the $400 mark and things are looking very good right now. In fact at the time of writing this post the price has already risen to $399,7 quite rapidly so I believe we will see 400 in just a few moments.

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Bitcoin breaks the 400 resistance as identity of its founders is revealed

Bitcoin just broke the 400 usd barrier shortly after rumors about the revealed identity of the Bitcoin protocol founder were released on the internet. According to Wired and Gizmodo, the mysterious man behind Bitcoin, Satoshi Nakamoto, is in fact an Australian  entrepreneur Craig S Wright.

bitcoin 420 usd blaze itBitcoin stable around 420

The sudden $16,50 USD jump in Bitcoin price quickly found stability around the 420 USD per coin area today where it has been hovering for pretty much the entire day showing signs of further upward momentum.

Is Craig S Wright really Satoshi?

The evidence provided so far can’t be used to conclude that Craig S Wright is Satoshi Nakamoto and in Wired’s case, the evidence was presented with extreme caution. There is still a very high chance that the claim is simply false.

The raid at Wright’s house

Shortly after the news release Craig S Wright’s home was raided by the Australian police showing that they aren’t taking any chances. The Guardian reported that a total of 10 agents were seen searching for evidence on cupboards and areas of the garage. The police entered Wright’s home on Wednesday afternoon merely hours after the release of previously mentioned news articles and even though officially the raid isn’t related to the revelation, you can’t help but wonder if they are trying to cover something up.

Let’s wait and see

Only time will tell if Craig S Wright really is the mastermind behind Bitcoin and the Blockchain technology, but the market has already reacted very strongly despite the fact that for now we are dealing with nothing more but speculation at this point. Given the fact that such rumors can move the price up so fast, I would be wary of trading the cryptocurrency for a few days or at least until we figure out what’s really going on.

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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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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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