CNBC Fast Money Trader, Brian Kelly, outlined 3 reasons why he thinks the price of bitcoin may be nearing a bottom.
Bitcoin has been stumbling for much of 2018 and that accelerated a bit on Friday, with bitcoin falling double digits for the first time in months.
In fact, yesterday wiped close to $40 billion out of the crypto markets and some are referring to it as "Bloody Friday".
There seems to have been a lot of "bloody days" so far in 2018.
However, one long time bitcoin investor and trader thinks there are several things that are signalling that we could be near a bottom....
More about it can be found here:
https://www.ccn.com/3-reasons-why-bitcoin-market-remains-optimistic-despite-6000/
1. Sentiment is awful.
Kelly said that currently the sentiment surrounding bitcoin and crypto is awful. Everyone thinks it is going lower.
Which is what you often need to see around bottoms.
When no one wants to buy an asset anymore and everyone wants to sell it, that is likely the time when bottoms are put in.
I am not sure what Fundstrat's Misery Index is currently reading, but it has got to be near some pretty low levels because it has felt pretty miserable.
2. Positive development within the Japanese crypto space.
Japan announced that they are regulating 6 crypto exchanges, which the market likely took as negative news.
However, in the long run this is exactly what has to happen in the space.
This is what is needed to happen for the crypt markets to "grow up".
The adults were never going to show up with no rules and protections in place. This represents a move in that direction.
(Source: https://kryptomoney.com/mt-goxs-bitcoin-massive-sell-off-got-bitcoin-price/)
3. Finally, there is no more Mt. Gox liquidation, at least in the short run.
In my post yesterday I talked about how the Mt.Gox bankruptcy has been moved out of the criminal courts and into the rehabiliation courts.
Which means that no more bitcoin will be sold for fiat.
The hope of creditors is that the move will eventually allow them to be paid back in bitcoin as opposed to fiat as bitcoin is worth significantly more now than it was back in 2014.
The next step for this process won't take place till February of 2019, which means there is no more selling related to Mt. Gox until at least February of 2019.
More about that can be found here:
https://steemit.com/bitcoin/@jrcornel/mt-gox-related-selling-likely-over
The bottom is close:
I am not ready to call a bottom just yet as the price action has been pretty terrible.
We really need to see a significant bounce off of the lows before we can start to call any type of bottom and we haven't seen that yet.
Kelly says he expects prices to bottom within the next month or two, and I could see that as well.
However, prices could get pretty ugly in the short term over the next 2 months. Perhaps it is best to just buy some coins now and then don't check your portfolio until November.
That may be something I should do.
Stay informed my friends.
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Follow me: @jrcornel
Hope I can see the bottom! But it is not pretty down here 😩😢😩
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Pretty scary down here.
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Plus it costs 6k to mine a bitcoin, miners will start losing money below 6k
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And it depends on what part of the world you live in... some places are still much cheaper than $6k, while others are significantly more expensive.
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I read contradicting replies about whether the mining difficulty adjusts downwards or only upwards.
You seem to assume monotony.
You may be correct.
IDNK.
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Miners will keep mining for a “loss” for some time as they have a sunk cost in mining hardware and data centres
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That is a very good point. If you spent millions setting up the mining farm, you can't stop just because you are currently underwater.
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sure, if they stop mining the net collpase and btc will die.. So investors move to another fast trqansaction coins...
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Do you think it might get worse after next months G20 meeting? Cheers mike
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Ok this post is too good
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Good analysis. Reason # 4: Because whoever is manipulating this will want to make some money from it as well.
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Haha yes there is that as well.
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Yes it will lower because I have invested 😂😂😂...Help me to grow..Thanks
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Is it any chance in Dec 2018 to break it's all time high
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Hey @, great post! GOOD
I enjoy your content Keep up the good work! It's always nice to see nice content on Steemit! :)
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This is like trying to lose weight. Not checking the scales for months. I suppose one has to try to stay positive in long term.!!
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Yes, it's exactly like that.
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Still this is not the Bottom for sure .. Expect more Decline in Graph .. And may the wait extend till last of August ... Time for great investing .. Will reap More .. have patience.
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Is it going to go any lower? That's not good news at this hour. Neither good nor hopeful. Whenever I read or hear about Bitcoin I feel like I'm going to have a heart attack of fright and sadness. November is far away and the economic crisis in my country is near. Greetings
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All traders should be afraid of what is coming No one knows where the bitcoin will go
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Sell your stuffs now, buy more cryptos, relax and go back next December to see if something had a fruit. That is the thing that we must do to avoid heart attack and depression.
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Exactly. The day to day moves can be pretty discouraging, especially right now.
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I check the prices to often - hoping for increases but usually just get disappointment 😣😣
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Its been hard to watch the prices go from bad to worse - i got into Steem in February and prices have just seemed to have decreased - still positive for the future though!
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That is good. Best not to watch the prices right now.
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Best not to, but hard not to watch!
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nice analysis ..spreading negative news is the main reason for the downfall of the bitcoin in 2018
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There is some truth to this as bitcoin and crypto are predominantly driven by sentiment and sentiment is terrible right now.
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I imagine there's a good chance that the market will be affected, but I want to stay positive and wait. Like you say, not going through the wallet is sure to make us less restless. Thanks for the heads up and for the advice.
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i belive in bitcoin . it will skyrocket soon . fingers crossed
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Most of the Fundamental and Technical analysis suggest that 5800$ is the bottom. We should see trend reversal now.
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Bitcoin need a good updates.... one of these a system for "money back-transfer" on cases of stolen, hack, fraud....
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It’s always hard when markets are like this but bitcoin has seen it at least 5 times before. It should be a great time to pick up some extra coins though!!
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if it is going to bottom, it should be a good time to buy, and hold for 5-6 months, to earn a good profit
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Crucial information about Bitcoin. Looking more from you.
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@jrcornel what do you think will bitcoin will break its all time high?
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I don't believe in any bottom, it has only sky to touch
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some miners are in loss today..
the reason is the price of btc..
if it downfalls more than there will be no more mining if the difficulties in mining become more harder to reach out
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I'll just be over here buying! :)
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Upvote me
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True, grab it now or regret later. So better get ready for the storm before it bounce back very hard.
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