Tag: bitcoin

Is Bitcoin The Place To Be In A Volatile Market

Posted on by Matt Thalman

Many investors have called Bitcoin the digital version of gold. Obviously, we know it is in a lot of ways the digital version of cash, but the comparison to gold would potentially mean that if the stock market continues to be volatile or potentially crash, then Bitcoin would be an excellent place to be invested.

However, while someday Bitcoin may genuinely be the digital version of gold, it is not yet trading as such, I’ll explain in a moment, and therefore is not likely the best place to be parking your cash while the stock markets decide which direction it wants to go.

A simple chart of with the price of Gold and the price of Bitcoin overlaid on top of each other, clearly shows the two investments have not moved side-by-side over the past year, let alone the past month when the stock has been flipping from trading lower by 1% to trading higher by the same amount every few days. Since August 8th, 2018 Bitcoin and Gold have moved in the same direction at the same time just 51% of the time. Not really movements or assets that I would call correlated. Although, since May 8th, 2019, around the time we started seeing an uptick in volatility in the stock market, the two assets have been moving in sync 58%. Still not a sign of strong correlation, but better than before and a sign that someday, Bitcoin and Gold may move much closer together.

At this time, though there are just too many unknowns with the future of Bitcoin from both a legal standpoint and an adoption standpoint for it to trade hand-in-hand with Gold.

First and foremost, Bitcoin is illegal in a handful of countries around the world. China is the largest anti-crypto country, but the list also includes Algeria, Egypt, Morocco, Bolivia, Colombia, Ecuador, Saudi Arabia, Iran, Bangladesh, Nepal, Pakistan, Cambodia, and Indonesia. Continue reading "Is Bitcoin The Place To Be In A Volatile Market" →

Bitcoin Is Running Out Of Time

Posted on by Aibek Burabayev

Last month I updated the Bitcoin chart after this cryptocurrency made a buzz at the end of the June pushing through $13,000. In the same post, I shared with you the 4-hour chart where the horizontal consolidation had been spotted. The Bitcoin price was at the $11,500 level then, and I expected it to drop lower to complete the correction.

Let’s see below what you were waiting for Bitcoin then.

Bitcoin Poll

The majority of you expected Bitcoin to drop to the $7,800. Bitcoin haters were second to see head much lower. And the fans were in the third place with an immediate reversal option (stops here).

So far the least liked option of CD=AB at the $8,980 was the most accurate prediction as the Bitcoin indeed dropped lower but only to the $9,071. I think that time emotions were above the calm mind as the 5-digit price tag of the crypto spurred both euphoria and hatred as opinions were divided. Continue reading "Bitcoin Is Running Out Of Time" →

Restless Bitcoin Makes Fiat Elite Sleepless Again

Posted on by Aibek Burabayev

A year ago, “Bitcoin was at a crossroads” as then I spotted a triangular consolidation on the chart. The price could go both upside and downside, and I marked them as “Revival” and “Oblivion” areas accordingly. Below are your bets for the future of Bitcoin a year ago.

Bitcoin

Crypto enthusiasts are in the majority, although haters scored a hefty 41%. This violent confrontation shows that Bitcoin again threatens the interests of the elite as there are a lot of people, including President Trump, who expresses their opposition to cryptocurrencies as a whole. And it’s a natural course of things as human beings often reject changes and the elite try to shield their ultimate position.

Bitcoin broke both the downside of the triangle and the bearish confirmation level at the $6400 entering the “Oblivion” territory. The bearish target of $1250 had not been reached as the price of crypto gold had reversed ahead of $3000 notch. So, the first move was to the downside, and those of you who chose the “Oblivion” option was right.

This year Bitcoin entered the “Revival” area. It’s time to update the chart, and I am going to start with the monthly time frame. Continue reading "Restless Bitcoin Makes Fiat Elite Sleepless Again" →

Bitcoin Duplicates Gold Chart

Posted on by Aibek Burabayev

“It's not gods who make pots” as investors move the market, pushing the buttons and sending the orders to the marketplace. It’s clear that they tend to behave one way or another, and that’s why patterns exist and appear from time to time as “there is no new thing under the sun.” It doesn’t matter what the instrument is it, let it be a very old commodity or a new digital asset, it is people who “worship” it, make it valuable and move the price of it.

Bitcoin caught the hype again recently after a disastrous 2018 when it was just falling all way down. I would like to share with you an interesting similarity in the chart structure of “perpetual” gold and Bitcoin aka “new gold” to find out if this rally is a part of something bigger.

Do you think Bitcoin is a good investment?

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Let’s start from the monthly gold chart as it is a model for the Bitcoin chart. Continue reading "Bitcoin Duplicates Gold Chart" →

Will 2019 Be A Better Year For Bitcoin?

Posted on by Matt Thalman

In 2017 Bitcoin became a household name as the price went from below $1,000 per coin at the start of the year to well over $19,000 as the year came to an end. In 2018, the price of the most well-known cryptocurrency fell from its lofty heights to close the year below $4,000 per coin.

As we roll into 2019, some cryptocurrency experts are predicting Bitcoin to break the 2017 record high and fulfill its destiny of going as high as $1,000,000 per coin by 2020. Other more modest expectations have Bitcoin at around the $50,000 range by year end 2019. But the mass consensus of Bitcoin experts has the crypto ending the year in that $20,000 range.

I personally still believe that is way, way, way too high, and I’ll go even as far as saying Bitcoin will end 2019 lower than where it starts the year.

There are two reasons I believe Bitcoin will not perform well in the coming year. Continue reading "Will 2019 Be A Better Year For Bitcoin?" →