True believers in Bitcoin: USD/BTC (BTC=X) and blockchain technology still gush about its enormous potential
Bitcoin might be down 80% from its peak, but true believers in cryptocurrencies and blockchain technology still gush about its enormous potential.Some still see bitcoin as the ultimate hedge against disaster.”There is a really good chance we have something better than gold,” Travis Kling, founder and chief investment officer of crypto hedge fund Ikigai Asset Management, said on Thursday at the Cayman Alternative Investment Summit in Grand Cayman.”It’s like a CDS against fiscal and monetary policy irresponsibility,” Kling said.
Credit default swaps, or CDS, are akin to insurance policies. These financial instruments pay out when a borrower defaults on debt. CDS grew infamous during the 2008 crisis when AIG, one of the biggest issuers of CDS, nearly collapsed itself.Like other crypto bulls, Kling is alarmed by the build-up of debt on government balance sheets and extreme steps taken by global central banks to encourage growth. Some fear that high budget deficits and low interest rates will eventually lead to hyper-inflation and erode the value of the US dollar and other major currencies.”That is how you would write the script” for the “mass adoption” of a new kind of currency that isn’t controlled by government authorities, he said.Despite the collapse of bitcoin prices, Morgan Creek Capital Management is launching a crypto fund that will complete its fundraising on Friday.The fund will focus in part on crypto infrastructure, the “picks and shovels” of the space, Morgan Creek founder and CEO Mark Yusko said.”We believe bitcoin will be one of, if not the, largest network on the planet,” Yusko said. “We are in the middle of the greatest wealth opportunity … It’s beyond any of our imaginations.”Morgan Creek is investing in a company that seeks to use blockchain to disrupt title insurers, which verify property transfers, Yusko said. Blockchain, the technology bitcoin is built on, is a tamper-proof digital ledger that records transactions without the need of a middleman.”Title insurance — it’s just a stupid business. Why do we need to pay $1,000?” Yusko asked.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,875.58.
The projected upper bound is: 3,676.00.
The projected lower bound is: 3,023.70.
The projected closing price is: 3,349.85.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 14.6645. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 23 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 36.15. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 53 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 4.600 at 3,362.440. Volume was 73% below average (consolidating) and Bollinger Bands were 77% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,406.41 3,663.88 5,417.36
Volatility: 13 55 65
Volume: 60,059 73,641 79,083
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 37.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 24 periods.