Plotting the Bitcoin Trend

A clear pattern has emerged in the bitcoin chart, and it’s not pretty.

Bitcoin Futures

Does anyone remember the hype regarding the launch of bitcoin futures?

The true believers thought that bitcoin futures would let the big boy hedge funds and pension plans in, and that would take Bitcoin to the moon.

Instead, the launch of Bitcoin futures marked the top of the market.

Meanwhile, if the current trendline continues, and fundamentally speaking there is no reason to believe it won’t, the next bounces will be in the $5,800 area followed by the $3,200 area, then the $1,900 level.

On the cash chart $19,345 was the top. A decline to $1,900 would be about 90%.

Should it play out that way, the true believers will not label this a bubble, but will instead insist that $100,000 is still in the cards.

Mike “Mish” Shedlock

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umdesch4
umdesch4
6 years ago

I mean, if, as Mish states, $1900 is some kind of key technical level, that’s at least in the ballpark…

umdesch4
umdesch4
6 years ago

I always had this vague feeling that a lot of people involved in bitcoin want to see it hit some kind of parity with the price of an ounce of gold. Maybe that’s where it’s headed?

George_Phillies
George_Phillies
6 years ago

Congrats to all of you who ended out ahead on the deal.

George_Phillies
George_Phillies
6 years ago

I have spent years saying that bitcoin was the world’s first spontaneously self-organized crowd-funded (sounds good, doesn’t it) …
Ponzi scheme.

Seb
Seb
6 years ago

A little off topic. So it’s my understanding that infaltionists argue that if we don’t have inflationary monetary policy then all the rich will hoard the hard money I.e gold and everyone else will be poor. The deflationists argue that if we don’t make money hard then all the rich will just print money and hoard all the real assets themselves and leave us with a crappy currency. Is there any way around the human condition? Is there any way cryptos or a like technology could truly level the playing field?

Meliv
Meliv
6 years ago

It will become the ultimate money laundry platform for people in developing country to move their money in and out their border, noticeably chinese people. However, to get there, the price needs to be stabilized enough so value can be projected properly.

Mish
Mish
6 years ago

the bitcoin algorithm will adjust to mining costs automatically depending on the activity usage of miners. If miners drop out the cost will go down automatically.

2banana
2banana
6 years ago

Doesn’t it cost about $4,000 In electricity to mine a bit coin nowadays? Will the “miners” collapse? And with it new “supply?”

Mish
Mish
6 years ago

Very good plan. Congrats

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