Chinese rumors confirmed.
Updated
A new, bigger bullish triangle pattern developed over the last few weeks. We can expect an outbreak on the upper side end of this week or beginning of next week. Until then, only small price moves within the triangle pattern will happen. An outbreak on the upper side will open new targets at 22500 and 24000.
However, we shall not forget that the US-government and the Bulgarian government own seized Bitcoins worth more than 3 billion US-Dollars and they want to sell them. We have to expect many major setbacks of the price of the Bitcoin at any time and this will make trading the Bitcoin much more volatile and risky in the future.
Alternative scenario:
We shall not forget that minor triangle patterns did not behave as expected during the last few weeks. As I already mentioned in my analysis from January 10, 2018, we cannot expect that chart signals will always work the traditional way for the months to come.
I could confirm the Chinese rumors on Bitcoin. The Chinese government is now having its eyes on local bitcoin miners present in the country. A huge number of miners has set their operations at some places in China, where electricity is available at low cost. With the Chinese government getting involved in control over these activities, it could possibly have a massive impact on the price of Bitcoin. According to some Twitter messages, the Chinese government is planning for an “orderly exit” for Bitcoin mining operations because the miners have consumed “huge amounts of resources.” - coinspeaker.com/2018/01/10/cryptocurrency-prices-given-chinas-rumoured-intention-push-bitcoin-miners/
We expect official news about this matter today. Depending on the conditions of this "orderly exit", the price of the Bitcoin could fall into nowhere. If Bitcoin mining becomes much more expensive, it could also have the opposite effect and skyrocket the price of the Bitcoin. I stay on the sideline, ready to act on the news.
However, we shall not forget that the US-government and the Bulgarian government own seized Bitcoins worth more than 3 billion US-Dollars and they want to sell them. We have to expect many major setbacks of the price of the Bitcoin at any time and this will make trading the Bitcoin much more volatile and risky in the future.
Alternative scenario:
We shall not forget that minor triangle patterns did not behave as expected during the last few weeks. As I already mentioned in my analysis from January 10, 2018, we cannot expect that chart signals will always work the traditional way for the months to come.
I could confirm the Chinese rumors on Bitcoin. The Chinese government is now having its eyes on local bitcoin miners present in the country. A huge number of miners has set their operations at some places in China, where electricity is available at low cost. With the Chinese government getting involved in control over these activities, it could possibly have a massive impact on the price of Bitcoin. According to some Twitter messages, the Chinese government is planning for an “orderly exit” for Bitcoin mining operations because the miners have consumed “huge amounts of resources.” - coinspeaker.com/2018/01/10/cryptocurrency-prices-given-chinas-rumoured-intention-push-bitcoin-miners/
We expect official news about this matter today. Depending on the conditions of this "orderly exit", the price of the Bitcoin could fall into nowhere. If Bitcoin mining becomes much more expensive, it could also have the opposite effect and skyrocket the price of the Bitcoin. I stay on the sideline, ready to act on the news.
Trade active
The same thing happens again like in the last few weeks: Things are still upside down. A downwards outbreak out of a bullish triangle! Additionaly, the months old bullish Stochastic indicator crossed the trendline and it is bearish now. More and more signals indiacte a free fall to 5568. Note
Janauary 11, 2018, 08:29Bitcoin is trying to breakout on the upper side of the triangle.
Note
The breakout happend and is tested right now. Note
On the above 5 minutes chart, we can see that a new uptrend line established on the Stochastic.Note
All of us are longing for a confirmation of the looming uptrend. Note
Once more, we see an outbreak out of a triangle with no upmove afterwards. The price of the Bitcoin is still remaining undecided in a sideward movement.Note
China mines 78% of the Bitcoins. It is a huge industry especially in the West of China. "Miners use powerful computer systems to solve complex math problems to generate and verify units of cryptocurrencies. The miners have thrived in sparsely populated areas of China where electricity is plentiful and inexpensive and temperatures are cooler." - Wallstreet JournalWhat does it mean for cryptocurrencies when China switches off all minters suddenly? Will there be a high level of disruption? Will the cryptocurrency verification still be possible? How big will the impact be on Bitcoin? Are there investor who will lose their Bitcoins?
Many questions that are answered in the newest Wall Street Journal article:
wsj.com/articles/china-quietly-orders-closing-of-bitcoin-mining-operations-1515594021
Note
Bitcoin tumbles as South Korea plans trading ban. This is the today's headline of the Financial Times.
“There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” said Park Sang-ki, South Korea’s justice minster.
ft.com/content/0d5ff7d4-f67d-11e7-88f7-5465a6ce1a00
Personally, I will react to governments that take measures against cryptocurrencies. I will no more buy goods from their countries.
Note
The overall scenario is still bearish. If the price of the Bitcoin can surmount the red dashed resistance line of 14129, the short-term scenario will change to bullish with targets of 22500 and 24000. Note
The overall scenario is still bearish. If the price of the Bitcoin can surmount the red dashed resistance line of 14129, the short-term scenario will change to bullish with targets of 22500 and 24000. Note
We shall not overreact on the news from South Korea about banning cryptocurrency trading. This year are elections and among young Korean people, cryptocurrencies are very popular. The goverment will not go on too fast because they want to be reelected again. :-)) Second, a law banning cryptocurrency trading had to pass the parliment, which could take years.
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