Sunday, January 14, 2018

Weekend Crypto Update – Bitcoin $13,800 195 Times and Counting!

 Bitcoin and most Cryptocurrencies continued with their sideways consolidation over the weekend.  I’ve been noting how many times $13,800 has been crossed in this Triangle, that count is now up to 195 times, and it looks to go still higher since we’re currently underneath:


Sideways patterns eat time and frustrate people who are looking for movement. 

Two of the largest Alt-Coin exchanges, Binance and Bittrex, are both still closed to new accounts.  I think this is likely throttling back the flow of new money into the Alts, and thus by and large they are consolidating too, but we do see movement – mostly money shifting from one Alt to another without the whole pond rising at the same time.  Again, that’s what consolidation patterns do.

Humanity Rising – Bitcoin Protests in South Korea?

I think it fascinating that people in South Korea took to the streets to demand that the government stay out of their exchanges and Cryptocurrencies!  Right on… as it should be.  People should demand freedom to do with their money what they want.  They do not need or want a nanny state who has a monopoly on money for the sole purpose of controlling the population.  Governments, lest we forget, are supposed to work for the people, not the other way around.


South Korea has fortunately backed off their exchange controlling remarks.

How Will Bitcoin and other Cryptos Perform During the Next Financial Crisis?

I’ve been giving this a lot of thought lately.  I actually think we’re in a financial crisis now!  However, this time instead of a melt-down, we’re experiencing a melt-up.  I think this is a wave of Dollars flooding all markets that has its roots in Quantitative Easing. 

All those trillions of Dollars have been sitting on balance sheets, but now that the FED has begun rising interest rates, reducing their balance sheet, and tax incentives have been created to repatriate Dollars, they are now coming home to roost in a giant wave. 

Also contributing to that wave is the diminishing role of the Dollar as a Petro and Trade currency.

Remember that waves are energy movement.  Differentials are required to create motion.

This wave will eventually crest as all waves do.  When it does, asset prices of all types will begin to fall.  Falling asset prices create a “flight to safety” initially.  What usually benefits during the first phase of a flight to safety?  The Dollar!

People rushing to get out of now deflating assets must first sell them for Dollars.  They later then convert them to assets they think are then cheap.

Assets like gold, and I’m thinking Bitcoin and other Cryptos, are likely to enjoy the flood of money during the melt-up, but once the wave crests could be sold to meet other obligations – usually debt obligations.

So I don’t necessarily agree with those who “Hodl” Bitcoin (Hodl is Crypto slang for hold).  I think it’s entirely possible to watch key exit and entry points, and to swing in and out of cash and/or Cryptos going down the least, during times of market turmoil.

It’s wise to think about how you’re going to react once this melt-up wave crests!  Personally, I don’t get emotionally married to any asset – I thus swing in to seek growth, and will just as easily swing out to protect the gains I have.  Hodl is a valid strategy, however, it’s all in what you’re personally comfortable with.


Nate

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