What else do you think might cause such a change in market sentiment at this stage?
When the mining hardware finally catches up with the demand, we will see the selling pressure from miners that have to cover their running costs. This selling pressure is proportional to the Bitcoin price. With the current price, this can be an amount up to $3.6 million daily, and this will surely be your factor that can change the current up trend. Speculators may come and go, but this selling pressure will always be there. Or at least in the next 3 years, and then half the amount in the next 4 years. Brace yourself, bear market is coming. Very important fundamental. Up until now, profit margins have been ridiculously high ever since the first ASICs came out. Obviously, this technological advancement stops soon and will adhere to Moore's law eventually. Only because of the ridiculously high profit margins have miners been able to withhold a large percentage of daily mined coins. As the profit margins collapse, miners feel the squeeze and are forced to sell more and more not only to cover the initial hardware costs but also electricity, rental etc. In any other market, miners hedge themselves immediately, but Bitcoin's bubble and compressed technological cycle has created a unique situation in the short term. Anyone who understands feedback loops will immediately grasp the horrors in my mind. We don't even know much the market could handle; I'm afraid it is very susceptible to changes in supply. Supply drought, supply shock.
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Here is my optimistic vision. Lower triangle angle isn't important as long as it's a little above the former low, and roughly symmetrical at least. Alternatively, a double bottom (can be a little bit lower too then). The charting matter has been a bit complicated because of the divergences between the Chinese and other markets, particularly MtGox. Based on Huobi's data, they have had a high of 1324 and a low of 350 already, whereas MtGox has 1242 and 455. That is a difference of 63% vs. 72% off the top. Bitstamp had a similarly sized high as MtGox with 1163 as the top, and a bottom at 382. 67%, so an intermediate between the two. Because of this, I would look at 2/3 exchanges' charts to confirm the validity of such a triangle, particularly in case one exchanges diverges at first by making a new bottom but follows up with a large candle wick. What's worrying me longer term is the hidden negative divergence in the weekly MACD (that is in addition to a shorter term one in the daily MACD).
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Magic the Gathering Online Exchange, laundering our drug money since 2010.
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You will never hear me saying in seriousness that something is certain. It is important to account for horrible scenarios, even if the probability may be low. IF we had a real bear market, so many would be losing nearly all of their wealth (and you just know that many here have almost all their wealth in BTC at all times) clinging on to their Bitcoins because they have ZERO risk management in place in case they are wrong. They would be crippled and in denial, and worse, they might even sell near the bottom as their s-curve and log chart delusions at last shatter … only to see Bitcoin rally to new alltime highs in the next years. I'm actually of the opinion that it doesn't look much like 2011 anymore thanks to this bounce off 455, and I will be placing bets accordingly. Yet I will never lose sight of this very real possibility, and thus, I will be limiting my risk. PS: If we have a bear market, the time to invest will be when everyone is too ashamed to proclaim "HODL!" and people start making fun of me for being bullish.
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Following the 32 top, it took 1 1/2 years to make a new alltime high.
Why do you guys think it cannot happen again? Or happen even worse? In 2011, things looked awesome too. But then came the bear market, 6 months long, 95% loss. Slowly, progress was actually undone as merchant acceptance dwindled etc. Why? Because the price fell. It is all feedback loops.
The price does cause the news because it triggers or "unlocks" certain events, and the news is reflected in the price before it comes out, usually. Practical example: Had the price not risen so much so fast, the Chinese government wouldn't have done anything yet, probably. And, is it not easy to imagine that insiders on the chinese exchanges held back buying before and instead sold, which reflected in the chart patterns?
You mean this? I've seen all this before, that's why I keep trying to tell you guys; I have been a victim of this in the past too. Latter 2011 and 2012 were likely the most productive times of Bitcoin, yet it was the worst of times for their value. Here is another way to look at this: Adoption and price aren't inextricably linked. Look at the price of the NASDAQ (still off its highs from 14 years ago) and the adoption of the internet.
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Don't worry, it's highly unlikely people here would have nearly all of their wealth in Bitcoin at all times, so I'm sure most people can afford and do repurchase the Bitcoins they spend. Right, guys?
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This is it, my friends. This is the end.
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My sources from Cyprus tell a different story, but I don't want to divulge too much.
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I was under the impression you meant it literally (that you have the power to move silver prices), sorry for assuming so. Thanks for the explanation.
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I don't have much time to buy silver now, so the price may go deeper.
Time to take your meds again. The delusion has come back. What makes you think your comment was worth writing and posting to everyone? What makes you think your (in)action will influence the global silver market to the degree of preventing/allowing new lows?
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I don't have much time to buy silver now, so the price may go deeper.
Time to take your meds again. The delusion has come back.
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I have noticed that not only does the recent Humble Bundle contain a game called "To the Moon", but also Bit.Trip 2. This is hardly a coincidence.
The Humble Bundle folks know something we don't … A second Bit.Trip To the Moon?
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Bear Blitz, are you being ironic again?
If I respond yes, then would that be a yes or a no? Makes you think.
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I've finally reviewed the s-curve and log chart uptrend everyone was talking about and I now realize it is too risky not to invest all of your disposable wealth in Bitcoin as soon as possible. You can regain the fiat, but most likely never the same amount of Bitcoins. Opportunities of this kind present themselves only once every couple generations. Few people have heard about Bitcoin, and even fewer understand it. As such, people present here have a huge edge in the informational asymmetry with regard to Bitcoin. In a way, we are blessed as pioneers. My failure was that the fundamentals are changing far too quickly for me to even keep up with because they have increased even moreso than the price until now. I am not sure yet which curve we will trace out, but those are the two that convinced me:
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I'm not sure why you even bother. Does it really matter whether your recent average price is 400, 600 or 800 when it is most likely going to quintuple digits this year?
vvv
I like your thinking.
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How long until quintuple digits? I recommend researching villas, private jets and supercars that you would like to buy within the next months so you are ready. Might even get to purchase it with Bitcoin then.
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Because of the power of wishful thinking, it will probably go up now.
Disclaimer: The author has not changed his Bitcoin position for several weeks and does not plan to do so in the near future.
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Blitz, the frequency of your post is getting higher. How long before the great dollar extraction? I'm waiting eagerly to buy back in Aternatively i'll wait for the bottom of this cup handle ... At least on Emptygox, price action is actually pretty boring. Bitcoin has probably become stable now. Our job as speculators is done, price discovery complete for now and all eternity.
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Do you see how we all just spinned a major retailer accepting Bitcoin as negative news? This is the raw power of human emotion. Reality does not matter.
Make believe is everything.
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