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Bitcoin Setting Up For Another Drop

Scorpio

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#1
Bitcoin Setting Up For Another Drop


May 8, 2019

Last year just days before the big Bitcoin breakdown we notified everyone publicly to get ready for a swift drop from $6000 to $4000 which played out perfectly within a few days. Our cycle system and technical analysis skills combined can pack a powerful punch and this one of those incredible moves where the stars aligned for us as traders.
October 12, 2018 – Post and Chart Here


We then further updated our followers in March of this year that a breakout was about to take place and a run to $6000 should take place. After that upside breakout move on April 8th, we posted this video further confirming $5800-$6000 was still the target.

Today/May Bitcoin appears to be setting up a broader top formation that suggests another move lower is about to unfold.
This first Daily chart highlights both support and resistance in Bitcoin. The Resistance goes all the way back to July 2018 where a Three River Morning Star pattern set up a gap with a Doji Star formation. This created the support level that was ultimately broken in November 2018. Support formed near $4000 in early 2019 with similar types of gap formations. This support level was ultimately broken in April 2019 with a move back up to resistance near $6000.


We believe the setup of the most recent price activity is setting up a classic three mountains top formation. A weak price rotation prompting a downside price move right now could be a short term ultimately top with next support near $5000. We believe a fairly quick downside price move toward the $4400 level (or lower) – near support.
Once price move to near the $4400 price level, or lower, if the support level is broken, we could see the price of Bitcoin fall all the way towards the $3500 level or lower. Fibonacci price theory suggests the failed high price move, near $7500, would represent a major failed high. This failure suggests a move lower attempting to establish a new price low. For this to happen, the price of Bitcoin would have to fall below $3000 which may sound crazy, but so was $20,000 bitcoin!
Watch for a reversal to unfold in the coming days, could be another opportunity to profit from another cryptocurrency collapse. Any failure of this breakdown/reversal move would suggest Bitcoin is setting up a new Pennant/Flag formation where the price will trade sideways before prompting a bigger breakout move. We believe a price breakdown is about to unfold and we expect prices to fall below $4400 within 14 to 28 days.
If you want to become a technical trader and pull money from the markets during times when most others cannot be sure to join the Wealth Trading Newsletter today. Plus, for a few days only I’m giving away and shipping Free Silver Rounds to subscribers who join our select membership levels.
Chris Vermeulen
www.TheTechnicalTraders.com


https://www.thetechnicaltraders.com/bitcoin-setting-up-for-another-drop/
 

FunnyMoney

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#5
I tried to short the exact week of 20k, I've been predicting this as tulip #2 for a while. The token price is something decoupled from the tech (blockchain with algo and so forth). The idea works with the token at a price of near 0 or in many styles with the token even at zero.

The payment system can work with the token at a price of zero, just ask them that. Eventually it goes to zero or very close to it.
 

#48Fan

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#6
Of course, anything can happen, but I'm not seeing it. Bitcoin has recently just blasted through several long standing resistances. It's definitely due for a near term correction, but I'm thinking 5K support will be as low as it goes. Although, looking at the last bull, this thing may not even correct any time soon. Much more exciting than all the low volatility consolidation we have had of late.
 

Bigjon

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#7
Well I have a different problem, that includes Bitcoin and all of this httpS; S for secret.

The Secret relies on the difficulty of computing prime numbers.

We have a local here in MN, James McCanney, who wrote a book called calculate primes where it is possible to generate a table of primes as large as you wish. Then the breaking of the code is simply a matter of using a computer to find the secret number.

http://www.jmccanneyscience.com/
 

ZZZZZ

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#8
BTC just hit $7,000, up 30% over the last 10 days.

Once this thing gets moving, there is no telling who high it can go, before eventually falling back to its intrinsic value, that of a fast and cheap international payment system that makes SWIFT look like a donkey cart compared to a Ferrari.
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Nomis Elpmis

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#9
Red lines are bitcoin 'mining difficulty reward halving' which occurs every 4 years. (next one May 2020) Grey lines are 1 year before the MDRH . Which is now. Does past performance indicate future gains?
BTCHalving.jpg
 

ZZZZZ

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#11
Happy days didn't last too long, down $400 in the last day.
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#48Fan

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#13
Also, I was looking at the charts. Last bull market for BTC, it went from $6k to almost $20k in just five weeks.
 

smilershouse

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#14
BTC is only 10 years old. During that time the currency has been volatile. It is said that only 1% of the global populace is currently involved. The reason why 99% are out of the crypto space is predominantly because of faith in the currencies of the Bank/Goob allegiance. People are trading in and out of the space because fiat is still the choice of medium exchange. The reason the bank/goob try their hardest to trash crypto is because they themselves cannot control and hence, tax its transactions. Thus, is both decentralized and unregulated. Cash is only king because people trust their govts and the banks to manage and be responsible for fiscal dealings. Once that faith, which is entering its demise is realized, all cards are off the table and anything can happen. The crypto's may crash and burn, but the opposite is also true. Crypto coins, along with PM's are the assets of the anarco-capitalist whom are voting with an alt system, as with the Alt-right whom, have also had enough with going along with the great unwashed, just to keep the beast breathing. BTC took off when Greece hit the pan. I can say with confidence that when the socialist utopia of Venezuela starts to affect the rest of the world, many more Alt-thinkers will be born, as many people are waking up, to the fact that bankers and goob need the people, more than the people need them. We are in wild west territory and although charts to some degree predict patterns, those patterns cannot predict volumes en masse.

SH


SH
 

Zed

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#15
Although, looking at the last bull, this thing may not even correct any time soon.
Do you understand what was driving the spike to 20k odd and what changed since then?
 

#48Fan

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#17
Yeah, Scorpio, that's a good question. I wouldn't doubt some people would be hedging into cryptos. But, there is also things like: one of the largest crypto exchanges was recently hacked and has trading halted for the past week, some major players testing the waters/opening fiat gateways, some dillhole in congress trying to ban cryptos in the US, the next halvening in about a year, etc. Lots of things happening in this space currently.

And, yes Zed, I have an idea as to what was going on in the last pump.
 

Unca Walt

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#19
Well I have a different problem, that includes Bitcoin and all of this httpS; S for secret.

The Secret relies on the difficulty of computing prime numbers.

We have a local here in MN, James McCanney, who wrote a book called calculate primes where it is possible to generate a table of primes as large as you wish. Then the breaking of the code is simply a matter of using a computer to find the secret number.

http://www.jmccanneyscience.com/
If you can easily calculate primes to... forever, doesn't that leave a huge Bitcoin exposure?
 

ZZZZZ

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#20
If you can easily calculate primes to... forever, doesn't that leave a huge Bitcoin exposure?
There's a lot more to it to "mine" a Bitcoin than just generating a bunch of large prime numbers.
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#48Fan

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#22
Other news: ICE's Bakkt Bitcoin settled futures to launch in July, Whole Foods (owned by Amazon) now accepting Bitcoin, Microsoft looking to do some identity stuff on Bitcoin blockchain. BTC pushing $8k level, up over 100% of yearly low.
 

Joe King

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#23
BTC pushing $8k level, up over 100% of yearly low.
Yea, gonna hit it's intrinsic value of $zero$ any day now. lol
 

arminius

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#24
intrinsic value of BC is 0. ^^^ extrinsic or more properly notional value is what you're talking about ^^^.

intrinsic value is ethical value, and IMHO there is none of that in bc

Intrinsic vs. Extrinsic Value​
First published Tue Oct 22, 2002; substantive revision Wed Jan 9, 2019​
Intrinsic value has traditionally been thought to lie at the heart of ethics. Philosophers use a number of terms to refer to such value. The intrinsic value of something is said to be the value that that thing has “in itself,” or “for its own sake,” or “as such,” or “in its own right.” Extrinsic value is value that is not intrinsic.​
 

Joe King

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#25
intrinsic value of BC is 0. ^^^ extrinsic or more properly notional value is what you're talking about ^^^.
I said it's gonna hit it's intrinsic value any day now, not that it is it's intrinsic value. Or at least that's what I keep reading on here, that it's going to zero any day now. lol


intrinsic value is ethical value, and IMHO there is none of that in bc

Intrinsic vs. Extrinsic ValueFirst published Tue Oct 22, 2002; substantive revision Wed Jan 9, 2019Intrinsic value has traditionally been thought to lie at the heart of ethics. Philosophers use a number of terms to refer to such value. The intrinsic value of something is said to be the value that that thing has “in itself,” or “for its own sake,” or “as such,” or “in its own right.” Extrinsic value is value that is not intrinsic.
I already understood the dif betwixt intrinsic and extrinsic.
 

Zed

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#26
intrinsic value of BC is 0. ^^^ extrinsic or more properly notional value is what you're talking about ^^^.
The intrinsic value of every FIAT currency is the same. That hasn't stopped them trading. Confidence is key and that in turn relies on the environment. Cigarettes have a very low intrinsic value but they have traded effectively as currency in prison environments for decades. Bitcoin offers some advantages and has been very useful for moving money out of regimes like China. Is it vulnerable? Hell yes... but that all depends. I can't see it getting a pass forever and I am curious as to why it has been let go so far, when you consider what happened to the Liberty Dollar people just for calling a silver round, a dollar.

... anyway, I'm not so sure that the path is clear for BTC. I'd love to know the US officials talk about when it comes to BTC and why it has been given as much latitude as it has. Looks a little like a covert state-sponsored experiment in some ways.
 

Joe King

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#27
I am curious as to why it has been let go so far, when you consider what happened to the Liberty Dollar people just for calling a silver round, a dollar.
With LD there was assets to be seized and people in charge of it that could be targeted. BTC has neither of those things.



... anyway, I'm not so sure that the path is clear for BTC. I'd love to know the US officials talk about when it comes to BTC and why it has been given as much latitude as it has. Looks a little like a covert state-sponsored experiment in some ways.
All they're doing is treating it like any other commodity. Ie: capital gains are taxed. In the eyes of the gov, buying btc and selling later for a profit is treated no differently than if you'd bought and sold pork bellies or gold or anything else.
 

Zed

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#28
With LD there was assets to be seized and people in charge of it that could be targeted. BTC has neither of those things
Yes... but it is also easy to choke down at the points it interacts with the financial system. If they chose to limit it severely it would not be hard, the Chinese did. I think they are at the least curious about the way it has been working, otherwise it would have but shutout just on the basis it can be used to aid criminal activity.

All they're doing is treating it like any other commodity. Ie: capital gains are taxed. In the eyes of the gov, buying btc and selling later for a profit is treated no differently than if you'd bought and sold pork bellies or gold or anything else.
It is a smart approach, however, it really doesn't address the competitive currency issues that could arise if it became too popular.
 
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#29
I laugh a bit at articles touting technical analysis for cryptos as if they are investment vehicles just like equities or bonds. The folks investing in cryptos aren't the same ones investing in traditional markets (hedge funds, banks, institutional investors).

I think the current action in bitcoin is likely a far east safe haven flight play as the trade war is likely going to force China to devalue the Yuan soon.
 

#48Fan

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#30
I do not think the US will ban cryptos. One being, short of shuttering the interwebs or cutting off the power, there is really not much they could do to effectively shut it down. Also, the US can lead in this new technology or get left behind. That is the question the dipshits in gov't have to contend with. Speaking to using BTC for illegal activities: fiat is much more effective for such things. Bitcoin transactions can be tracked down since it is an immutable public ledger. Although I have heard that the developers have been kicking around ideas to make BTC completely untraceable. I'm sure it would be more likely implemented if the US tries to ban it. And they have (or are) launching satellites for Bitcoin transactions, then, even shutting down the internet will not hamper it. The honey badger of currency don't care!
 
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#31
... there is really not much they could do to effectively shut it down. ...
They could shut down the exchanges. If folks can't turn BTC into $, it will die on the vine. $.02
 

#48Fan

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#32
They could shut down the exchanges. If folks can't turn BTC into $, it will die on the vine. $.02
BTC doesn't need exchanges for p2p transactions (which is its primary function). Just find a buyer and trade for fiat.
 

ZZZZZ

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#33
BTC doesn't need exchanges for p2p transactions (which is its primary function). Just find a buyer and trade for fiat.
Right, but doesn't the transaction need to be entered into the blockchain to be validated?
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Unca Walt

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#34
I hope gummints don't muddle in and shut BTC down.

zzzzzz:
I put a line item previously about the discovery of a method to find prime numbers to any size at all. That sounds academic. It ain't.

It was supposedly impossible to simply turn a crank and generate primes... and here comes quantum computing. What would take our largest standard computers twenty million years can be done in milliseconds.

What I see is an enormous set of "Hey, Gummint! Lookit!" bells shining. Setting up a way to find primes could very well be used as an argument by the Gummint that BTC and clones are absolutely vulnerable... and therefore need Gummint control/help.
 

Zed

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#35
One being, short of shuttering the interwebs or cutting off the power, there is really not much they could do to effectively shut it down.
They can shut it down in hours by simply stopping it at every point it hits the traditional financial system. If it is not exchangeable it is worthless... Stopping it is a simple matter should they decide to do so.
 

#48Fan

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#36
They can shut it down in hours by simply stopping it at every point it hits the traditional financial system. If it is not exchangeable it is worthless... Stopping it is a simple matter should they decide to do so.
Yeah, it would be the same for PM's or anything else for that matter. So why even bring it up?

ZZZZZ: You only need a BTC wallet address.
 

Someone_else

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#37
Right, but doesn't the transaction need to be entered into the blockchain to be validated?
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Yes... But ??? What does that have to do with the suggestion from #48fan that exchanges are not needed, people can deal directly with each other?

Okay, maybe an analogy is needed. I can use a bank as a convenient way to pay my bills ("exchange"). Or I can bypass the bank and deal with cash with anyone. Either way works. I do not NEED a bank ("exchange") to do business.
 

ZZZZZ

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#38
Yes... But ??? What does that have to do with the suggestion from #48fan that exchanges are not needed, people can deal directly with each other?

Okay, maybe an analogy is needed. I can use a bank as a convenient way to pay my bills ("exchange"). Or I can bypass the bank and deal with cash with anyone. Either way works. I do not NEED a bank ("exchange") to do business.
I'm just asking questions, trying to learn. Without the block chain, what is there to prevent the seller from selling that coin to somebody else, over and over.
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Zed

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#39
Yeah, it would be the same for PM's or anything else for that matter. So why even bring it up?
Yeah, no it wouldn't and isn't. Gold is a physical medium and it isn't being promoted as a medium of exchange, it solely serves as a store of wealth. That makes it easy to end-run any controls as long as cash exists and a face to face exchange can be made. BTC is a pretender to the 'currency' throne and among its touted strengths is the ability to transact remotely. As soon as you enter into the realm of currency or medium of exchange you bring a whole new set of issues and you attract .gov attention. Kinesis Money is a gold derivative that will attract the same attention and potential controls as BTC because it has currency potential. They want everything inside the system and ultimately the way to control that is to have everyone locked into a digital currency of some sort. It solves many of the issues with FIAT and helps relieve pressure on the fractional reserve banking system in times of crisis. It even simplifies things like incarceration, imagine being able to limit the geographical area in which someone can transact, or stop them from transacting in the free world period. Imagine being able to seamlessly and automatically tax every transaction as it happens. The level of control that this type of technology offers government is astonishing. Mark these words... when they are ready to make the move to digital currency all currency pretenders will be eliminated (if you are lucky converted). This is a big step and will likely come off the back of a big crisis and be sold as a solution.

BTC isn't the same as any physical commodity and offers a fantastic learning opportunity for future currency technologies. You can choose to believe that this is serendipity or it is by design, either way, it is headed to a similar place. BTC has been given a pass for a reason IMO and it will stay that way until it is no longer a useful study. The Chinese have not tolerated BTC but they have been employing lots of crypto programmers, they also have masses of gold and they desire a stronger more internationally acceptable currency. You do the math there and you can be assured that the US is formulating or has formulated a response. Dominance in the international currency space is playing for all the marbles and government is salivating @ the power on offer through these crypto technologies. To believe that anything is untouchable here is naive in the extreme. Fighting city hall will be foolish in the long run, keep that in mind.

I love the idea of BTC and I'd love a world were .gov doesn't control currency but I can't see that will happen anytime soon and without an epic battle being won in that space.

One thing I am certain of is that this will be fascinating.

Stay nimble and don't buy into any of this as religion, it all can and will change rapidly once we hit the next 'phase change' in the currency space.

Yeah, yeah, JMO etc...
 
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#48Fan

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#40
I'm just asking questions, trying to learn. Without the block chain, what is there to prevent the seller from selling that coin to somebody else, over and over.
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The blockchain is made up of thousands of computers across the globe connected through the internet. Each computer has a copy of every transaction that has ever existed, these are called nodes. The exchanges are just places to trade coins/tokens between folks. But, if I have a wallet on my phone and you have a wallet on your phone and you want to meet me at the coffee shop so you can buy Bitcoin from me, it would be easy. You would give me x dollars, then I would scan your wallet QR code off of your phone with my phone and I would send x dollar amount directly into your Bitcoin wallet. Make sense?