Bitcoin - The beginnings of a recovery?

in #bitcoin6 years ago

After months of garbage, bitcoin is starting to emerge from the ashes.

After peaking in December of 2017 just under $20k, bitcoin has mostly only gone down.

There have been a few brief rallies along the way, but none of them went on to make a higher higher than the failed rally the time before.

Basically, it has been a long line of lower highs and lower lows for over a year now.

None of that has changed yet with this most recent rally, but at least we are seeing some bullish price action for the first time since plunging below $6k several weeks back:

(Source: https://www.coindesk.com/bitcoins-path-to-5k-faces-a-major-price-hurdle)

Cautiously optimistic?

There are some possible resistance points in the short term convening around the $4,400 price point, in the form of the 50 period moving average as well as some horizontal resistance that could prove difficult for bitcoin to bust in the very short term.

If bitcoin can bust through those, the current rally may have some legs.

The next major resistance point after that would be up near $6k, a spot I don't see bitcoin breaking for some time yet.

This recent rally needs to keep from making new lows if we are to have any hope of breaking this year long down trend, but so far the price action is encouraging.

Stay informed my friends.

Follow me: @jrcornel

Sort:  

BTC just lost a few points. But it is expected after such a run. If we just stay above 3600 we should be fine.

Posted using Partiko Android

As long as we don't make lower lows things are ok.

Coming from $20k it was hard to fall much further. This will test the strength around $4k, to build upon next year.

I think we go sideways for a bit before the next major run starts late next year.

Check this out: https://www.scribd.com/document/396096529/Token-Taxonomy-Act-of-2018

This is a House bill that was just proposed this morning. It would retroactively apply to transactions all the way back to Jan 2017!

Pretty cool if it were to pass :-D

I had heard about this. Would be exactly what is needed for businesses to start accepting crypto. If this happens, the flood gates open for retail businesses to all start accepting crypto. It's cheaper than credit cards.

The volumes seem interesting as well as they continue to increase... Time will tell but still cautious!

Posted using Partiko iOS

I would like to see how is the correction after this rise...depending on how normal it is I would change from bearish to neutral

Posted using Partiko iOS

Yep, that will be interesting to watch. Does it go right back down or does it hold most of the move up?

Essentially I would like to see a correction keeping around at least 50% of the rise

Posted using Partiko iOS

I do not believe this is going anywhere but lower.
Of course, will you be able to buy any ACTUAL bitcoin at the lower prices?

However, we are almost out of this down part of the market cycle.

Just remember to get all your coins off of any exchanges.
Because when the price actually moves, those exchanges without 100% coverage are going to go bust.

Lol, not following what you are talking about here exactly?

I believe the price of bitcoin will make a lower low.

The problem is that may be the "price" on the exchanges, but you can't really acquire any bitcoin at those prices.

As in, buying bitcoin on the exchange and getting it off the exchange are two very different things.
Further, if you buy it from an actual person, there mark up will probably be very high.

Quantities exchanged and exchanges does not add up. Too much volume. So, either a lot of people are trading it back and forth, or there is a lot of "made up" bitcoin.
This leads to one really big problem. When the price of bitcoin starts skyrocketing, the exchanges that do not have enough bitcoin will... suddenly be hacked. (just like MtGox)

So, it is of paramount importance to get your bitcoin into your personal wallets.
And, the price you see, may not be the price you pay.
And the price you see will be going lower.

What do you mean it does not add up? I guarantee you there are tons of automated trading programs out there flipping in and out of bitcoin all day long, which might make it look like the supply is bigger than it should be.

I'm not optimistic about the prior level being the low. It looked like it was going to hit seriously low. Like it was going to go all the way back to where it was before the spike. This return makes me feel like it's just a slight spike back upwards before going lower. But, part of me hopes I'm wrong...that it's all over...finally...while another part hopes it's gonna go lower, and I manage to buy some Steem at that super low point.

I also worry about what the usual downtrend of the new year is going to do when we are this low this late in the year. Perhaps we'll start to recover, then it will dip at that point, and keep going back up.

I don't think the Chinese New Year and other seasonal issues will have nearly as much affect his year. I actually think some of the selling we are seeing end of this year is tax related selling, ie locking in losses to offset gains in other places. Then they buy back in start of new year. If my theory is correct we could see a nice rally from now and into the first few weeks of January.

Yeah, that could definitely play a role. I'm not sure how many would have left it to the last minute to lock in losses though. More than likely that was spread out throughout the year.

Mostly funds do things like that near the end of the year, and they tend to be the ones that move the markets.

I always had a sneaky suspicion that when the financial system finally goes tits up - which I think we are seeing the beginning of - then crypto will rocket...

There is going to be a lot of extracted money from the markets, and they have to put it somewhere..
There is not enough real gold or silver, to cover the paper contracts, so maybe it will pile into a currency not part to 'the system' as a safe haven...

Just my thinking...

Could be. I personally think it will take a long time for things to "unravel" like people think. Though to your point, the stock market sold off trillions of dollars in the last month and that money will look to go somewhere...

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvoting this reply.

Coin Marketplace

STEEM 0.17
TRX 0.16
JST 0.028
BTC 74418.67
ETH 2589.08
USDT 1.00
SBD 2.43