"Crooked Hillary and Toxic Tether".

It'd make a great comic strip. (Printed on 10-year Guvpaper of course ).

10 year guvpaper dumperoo as well. Yields aloft ! Student debt bomb slightly closer to the touchpaper.

According to Greg Mannarino this is all co-ordinated action to keep the stock market afloat.

We finally have an immensely satisfying and delicious consolidation.

1-Wk MACD correcting. (But it's gone too deep for the 1st bar so it's going to come back up). No worries, there's plenty of padded cushion to dump into. F*kr keeps bouncing back up when dumps try to penetrate support.

HPB liquidity building.

CBOE futures had to reverse up just there.

A spread was opening up where CBOE price was shorting/selling heading down below cash price on Stamp. But CBOE couldn't sustain the fall and is now following cash price to see what it should do.

Traders starting to load up on Stamp.

Nerves getting wracked over being caught on the wrong side of a huge short squeeze.

Market looking superb.

What does New York University's bitcoin troll in residence have to say about latest events ?

Lets have a look at the RSI long range.

We are now at one of those lower peaks which followed all previous corrections in the last 2 years. So that would appear to raise 2 possibilities based on precedents:

1. it's an overheat-fan propellor type correction and will retrace back up the "spinner" to around 13,500 by mid February
2. if the 1-Week RSI really gets into the oversold zone then we could be in for another extended consolidation that may last at least the whole year

Close-up on the subject of my previous post.

Explains why sub-$10k dips are being bought. They are so close to the longer term mean trendline.

I think I might reverse my earlier assessment of it going back to 1k.

This is looking increasingly like one of those "propellor overheat" corrections on a humungous scale, which means we're still in a heavy bull market. I've seen this so often now, not just in bitcoin but in altcoin markets as well. See this post for background:

http://bitcointalk.org/index.php?topic=178336.msg17475939#msg17475939

The problem is, the correction's just far to sharp and deep for it to be the start of a long term bear market. What's happened is it got overheated in December, then the bubble popped. Then shorters took control and it gets oversold. Then the short bubble pops and it generally ends up halfway up the retrace where it stabilises. So that would be around $13,800 if it spikes down to, say $8800.

If it really was the start of a long term bear, what usually happens is you get a bubble popping to, say 30%, 40% retrace, then a slow build up over a couple of months, then lower highs from there on for 6 months to a year. This isn't like that. It's a perfect bitcoin overheat retrace type correction (IMHO that is).

Lets see what happens when the shorts close and re-assess as we're getting into oversold territory at increasingly long ranges now. RSI is confidently oversold at all ranges up to the 6 hour already, 12 hour is just entering and 1, 3 day are not far off.

Don't really know what point you're trying to make Globb0.

The point I was making was that when an entire asset sector has a single entity like Tether in its midst that's capable of bidding up the market at will with limitless supply, that is a toxic situation. That isn't the case with "pure crypto" assets like BitUSD. Their supply is not created arbitrarily out of thin air and is always market backed which is why you occasionally get those spikes you're pointing out.

The reason is stays on its peg is that when it spiked down like that there is a huge market gain to be made for traders taking the long side in order to restore the peg (which is exactly what has happened since that dump occurred. See current price):

Chief bitcoin troll at University of New York Stern School of Business is enjoying himself.

Not the same thing at all.

Fiat requires to be underwritten. Even central banks cannot conjure it up "out of nothing". They need third parties to endorse its value by way of debt contracts. Ok, those debt contracts are of a range of quality and are subject to default, but the fiat that's in existence is all at least created ultimately - not by the central bank - but by those sovereigns or corporates who's bonds the central bank has to buy in order to "create" the new money.

Tether on the other hand is no more than a cancerous tumour that can consume everything in its path. Whoever has control of the Tether supply can simply buy up real assets like a tsunami washing over a city at no cost or risk to themselves. If a central bank buys toxic sovereign debt and that debt defaults then the the bank holds nothing. On the other hand if Tether Company conjurs up $300M of tokens and use it to buy Bitcoin while pushing the price up, if Tether defaults they still have their bitcoin

The irony is that the cryptocurrency "community" largely exists to escape the tyranny of central banks over extension, only to fall into the trap of an even greater tyranny planted right in its midst.

If it had any sense it would use the BitAssets as fiat pegged trading pairs for crypto, being that they can't be corrupted in the way that "funny Tether money" can. But sense is usually in short supply when the market is rife with only one or other of greed or fear.

So that now looks like they sh*t themselves and decided to pump the market to cash out in an attempt to recover all the USD they didn't have in reserve backing the Tether pool then. Exact same procedure as Gox when they found themselves in a fractional reserve situation - tried to recover to full reserve market manipulation with "fake money".


I'm sure we will. 1-2k incoming longer term. The entire year's growth is just gonna look faked now.

I think the whole 2017 runup was Gox on steriods.

When I first even heard what Tether actually was (a random-mined crypto "supposed" to be backed by real money) I just rolled my eyes. Money that costs nothing to make and is in the hands of a single entity can obviously cause all kinds of damage. It explains the huge pumps we saw periodically throughought the year. Anyone accumulating for real would never go charging into the order book like that.

But when you can just conjure up x-millions on a blockchain at will and use them to buy real bitcoin then anything is possible.

This can easily go back to 1k.

I blame the exchanges for the Tether nonsense.

They could have listed a genuine trustless, market backed fiat proxy such as BitUSD which would have been far more reliable and bullet proof than some corporate emperor's clothes crap like tether.

Yeah. Price and On Balance Volume have been telling opposite stories lately. $7500 incoming. Then $5k, then $2k, then moon after that ; )