Tag Archives: Bit Coin Mania

Intraday Bitcoin Review: There Is Only One Of 3 Ways it Can Go!

Any basic chart is a two dimensional thing and no 3-d or holograms will form. North, South or East are our only three choices. For all of March so far Bitcoins have been heading South, or South-East. Will it break out, slice the top trend line and head North again? My wave counts are very speculative and can get trashed as soon as they are posted.

I’m working a basic diagonal set of 5 waves heading down a potential 5th by one higher degree. This is a pretty deadly combination, as normally it would signal the end of a bearish phase. The problem with that is that Bitcoin has “NO” track record of establishing big cycles. Every asset class has huge cycles in it, but Bitcoin is only heading down?

From my Cycle degree perspective a true bull market will consistently leave old highs in the dust, but Bitcoin is no longer doing that. Bitcoin has been in a bearish phase for well over 3 months, (all of 2018) which could just be getting started.

To be in a real bull market, the $20,000 price level must be left in the dust! How long are those investors going to hang onto Bitcoins if it keeps falling in price? They will get pissed off and when they try to sell them, they find out they can’t get US dollar back into their checking accounts. The flow of US dollar cash has to flow into your home account smoother and faster than it goes into your Bitcoin trading account.

All the Bitcoins in the world will be no good, if there is no smooth flow of funds back to you. My personal guideline is, if you can’t get your money in less than 5 business days, then chances are good you don’t own it.

College students use financial aid money to invest in bitcoin – Business Sector

Warning, crypto investors: You must pay taxes on your bitcoin – MarketWatch

Most of the Bitcoin winners will find out the hard way when the IRS hounds them for not paying income tax on their Bitcoin sales.

The Gold/Bitcoin ratio has compressed from about 15:1 to a present 6.4:1. It now only takes 6.4 gold Troy ounces to buy one Bitcoin.

The 1987 crash was a computer driven crash, but Bitcoins have displayed no such sharp decline yet. Even if the Bitcoin prices crash like the 1987 crash, it does not mean that a bull market will kick in. In the long run Bitcoin prices could flat line and never recover. It is also interesting to note that the COT report shows no sign of the non-commercials playing the Bitcoin game. The Speculators are doing all the Bitcoin futures speculation. They are only net short Bitcoin by a ratio of 1.35:1, which is nothing in the big scope of things.  Even with the speculators I would like to see more of an extreme ratio, which could be a potential bear trap.

All the Cryptos capitalization is only about 329 billion today, which is also just a very small part of the market. Let’s put it this way, “any super Bitcoin crash will not take the general stock markets down, even though the Nasdaq could implode for different reasons.

I may only update Bitcoin charts once a week either on Sundays or early Mondays, as it is not at the top of my priority list.

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Bitcoin Another Record High At $12,230

I couldn’t help myself but to create a wave count as well.  The specific wave degree may not be the right one at this time, but what followed the “ABC” crash was a diagonal pattern. These diagonals happen in 5th waves, so we have a good understanding where we are, in an Elliott Wave sequence. Just in case there is more upside to come, I used a Primary degree wave 3 as my top. This top hit $12,230 but we have to see if it will hold.

Normally any correction can take Bitcoin back down to the previous 4th wave of one lesser degree, which puts the $10,000 price level back in the cross hairs. Anywhere between $11,000 and $10,000 would qualify as the previous 4th wave of one lesser degree.

Sometimes it can even go under the previous 4th wave of one lesser degree, which would be below $9500! Any more than that and we could be looking at a complete bust of this Bitcoin Maina.

 

The chart above may be a bit old, but Bitcoin already qualifies as one of the biggest bubbles ever!

Horror stories come out, like the one guy losing millions when he tossed his hard drive.

Bitcoin: Man who ‘threw away’ $140m wants to dig up landfill

Gold company’s stock jumps 1300% after switching to bitcoin | MINING.com

In 2000 gold companies switched into the internet craze just before the markets crashed, and gold soared. Now they are doing the exact same thing. One thing that the Bitcoin crowd does not understand, is that Bitcoin is “NOT” gold. Bitcoin has “NO” intrinsic value.

Right now they are hoarding Bitcoins but the day will come, when the Bitcoin miners start to dump Bitcoins!


Updated Dec, 7, 2017

Bitcoin just keeps on breaking record highs, blasting past and wave count I had.  Our last Bitcoin price was about $15,914.  It is a silly notion when we think that we can pick an exact bubble top. Bitcoin has now started a bit of a correction, but we know not to trust for this price level to hold.   There is a plethora of digital cyrpto currencies coming, so the markets will become swamped, with privately issued money. Even the US government is talking about issuing their own Cyrpto currency. (Fedcoin)

Anybody can buy a Bitcoin Miner and if it contains the right card, you may be lucky to mine one or 2 coins a month.  Majority of Bitcoins are hoarded, and the miners will one day, try and dump them all at the same time.

The Toronto real – estate  scene is a prime example, how people want to dump their holdings all at the same time.  2017 sure looks like the “Year Of The Bubbles”.  In all of  history I have never heard about so many bubbles being active all at the same time.

There is talk about Bitcoin futures, which should give us some better charts,once they come out.

The Gold/Bitcoin ratio achieved 12.77:1 today. This means it takes 12.77 gold ounces to buy one Bitcoin. It used to be that you could buy 2 Bitcoins with one ounce of gold just a year ago.  That is a dramatic change already and that ratio can keep expanding.

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