Bitcoin May Have Found A Bottom...The Bottom Of Credit Suisse

in bitcoin •  7 years ago 

Everyone is out looking for bottom-callers to make them feel better. I mildly obliged last night, throwing in a "this is probably a good spot to buy" at about $6060. It's still far too early to say, but little did I know what a clean bottom Bitcoin was about to put in. If this holds, I'll have been within 1%.

6k Bottom 1.png

A sure sign some lazy buyer/traders are setting limit buys at exactly $6,000.

I honestly can't remember ever seeing such an exact bottom on a chart. $6000 and .00 cents indicates a buyer was sitting with large enough limit order right at $6000 to stop the downtrend to the penny. I'd call it a fairly bullish sign, as we're already up almost 30% from that bottom ($7678 at time of writing), but predicting this market is practically guessing.

6k Bottom 2.png

We could be forgiven for thinking $10,000 would serve as stronger support.

What's causing the crash? There's chatter, yet again, of China shutting down all access to foreign cryptocurrency exchanges, rather than simply the domestic ones. Of course, this is nothing new.

A more interesting possible explanation for the increasing degree of this dip may be found in the US equity markets. The stock markets all dumped, and the BTC/Vix (volatility index) inverse correlation has suddenly broken.

BTC v Vix.jpg

Let's hope this correlation is broken without further BTC downside.

This proved to be bad news for Credit Suisse, the custodian and largest holder of XIV, the reverse VIX ETF. Oh well, it's a major bank, so screw 'em! Reportedly, they "only" lost 2 quarters worth of profits...

6k Bottom 3.png

In stocks, they actually call this a crash (20 -> 16).

Long-term, I can only assume such market turmoil is a positive for "alternate assets" such as Bitcoin.

Hodl accordingly.

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Yeah I am also seeing $6000 as bottom but I am still not convinced untill we break $10000 with strong impulsive move. Bitcoin is currently trading under $8000 and it is still under threat of another fall.

The price shoots up too high very fast so it's not surprising that it will go down since many are in profit already. Of course they want to have some cash too.

I am bearlish yet too. I hope we can continue recoverage moviment to cancel last low pivot

I just tried to learn bitcoin but still do not know

yes, learn about it, check it's history, and then evaluate the risks and reflect. Then, if you feel still up to it, you can invest, but always be careful and don'tlet emotions take over your decision.

How many more falls before a tangible recovery.. sigh...hodl still

Buy more when the price is cheap and you'll see the profit the next few months.

B-but I already spent all my money sir. I guess I can do a bank loan. It will for sure go up r-right?

  ·  7 years ago (edited)

Never spend money you can t afford to lose on crypto. Never take a loan to invest in crypto... for now, just hold... it may take a year, but you will recover what you put in with benefits.

Never take loan for crypto

The graph was somewhat synonymous with was obtainable this time last year.
It will bounce even better.

Good to see the sunshine after many days of gloomy darkness! I believe the positive news from the SEC will push the price of the market in a more positive direction from now on!

More bitcoins are created "out of thin air"
Sounds like that other currency bitcoin evangelists swear bitcoin will replace lol

Thanks for the info, I think bitcoin will be back over 10k in the coming weeks.. at least I hope so.. either way I am just holding..

Earlier this year the experts where calling for BitCoin to top out at $60000 I believe it will still happen. Just a little winter sell off stay strong.

  ·  7 years ago (edited)

This is very realistic analysis and much more news worthy than what I see on google cnnbc etc it's either $50,000 headline or it's a ponzi the growth is going to come and it's not going to 0

I was a bit wide of the mark I called about $7000

I sure hope so. I miss those 2017 Green Days in December

Just be patient...

This dip is very interesting. It makes me even more excited rather than scared like what many feel right now. Let's just imagine we're buying a Ferrari now with a huge discount of 60 - 70%. Lots of profit to make these coming months haha

@lexiconical, you never know, Credit Suisse probably the ones who are buying Bitcoin to balance their sheet, what do they have to lose after the XIV fallout, they have already cleared out their profit margin for two quarters

The last bottoms I bought were not the bottom... now that I refused to buy, it's probably the bottom. :-P

I thought I was alone thinking this 😂

  ·  7 years ago (edited)

I wish I had more fiat to convert into crypto. This would have been the perfect time to storm the market.

On second thought, I can't even say for sure if I would have bought crypto if I had the money to. With all these FUD and scams all around, it makes a lot of us loose our faith in crypto. I for one, I'm guaranteed about the long term viability of crypto. However, I do understand that not everyone share the same point of view.

6k was low, but it could go even lower. So many technical analysts predicted a bullish trend prior to the dip. It makes me doubt the authenticity of technical analysis in the first place.

  ·  7 years ago (edited)

I think 6000 is the actual threshold. Why? Because the price of mining it is pretty much at that level. Its like gold: if you do not cover your expenses in mining it you just stay away. Possibly the same situation with BTC.

So, my bet is the bottom line is 6.0k - the top line...who knows? It really depends on your ability to HOLD

The near future will prove me right/wrong.

Cheers,
Adrian
a0.png

Gotta wonder how it's going to play out in the future with more and more people getting into the crypto mix. Will these turn out to be a safe zone when wall street is taking a dive, or will they mirror each other? Another fun wrinkle is how diverse the crypto markets are and will markets in other countries (Asian countries, in particular) have similar effects?

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I like this post, interesting enough to read @lexiconical

Interesting article!

Checkout @cryptobroye for more bitcoin info and analysis. Im sure there's a lot we can learn from each other!

thanks for share. it is good thinking and i agree your analysis

Thank you for the encouraging and comforting information.

For me the bearish market is done after settling above 12,000. It might have another leg down or a retest of 6,000.

good call lex, glad to have you and the virid back in biz!;)

This post has received gratitude of 6.32 % from @appreciator thanks to: @lexiconical.

bitcoin might still fall to $4800, my prediction though

I'm convinced 2018 is going to be the Year of the Crypto. We're just clearing out those who can't handle it in the beginning.

  ·  7 years ago (edited)

Hey @lexiconical
I just can't wait for bitcoin to go on a bullish run again. 20,000$ might be the next stop. it's always great to see your report and always have investors to take the right decision for your post you really done a great work.keep it up !! thanks
upvoted

I am happy to be friends with you in steemet,
Warm regards..
By @ Kani77

agree with you @lexiconical Very knowledgeable post and useful information in btc.
really encouraged me your post.
followed + upvoted + resteem

Just my personal opinion. The next few days will be a bull market for BTC. It will probably face resistance at mid-9k as buyers at the bottom will start cashing out. Probably another bottom will build up at 7k-8k before BTC eventually shoots past 10k and will signal the return of the bull market. For me the earliest possible time until this bear market ends is around the end of February.

The market is already frustrating and some people are only waiting for the price to come up before they pull out their funds.

Ps:) I hope you're doing great? Been a while.

Yep, it seems that it found its bottom :D I am sad that I have waited so much, everything has increased with over 30% in just a couple of hours...

I too would have been a buyer at $6,000 if I had any extra fiat to put in. I wonder if we'll see another pullback to test that $6,000 support level - that's certainly a possibility, but things are looking pretty strong right now. $10k could be quite resistant though - we'll see.

I don't think there was any correlation between the losses in equities and the losses in crypto. The latter began several days before the equity rout, which was actually kicked off last Friday by the release of the NFP report showing higher than expected wage growth.

Anyway, good to see things moving higher for crypto today. Could be a bad day to be in stocks though, at least in the U.S. - U.S. futures are showing a drop at the open.

hoping it'll recover soon

I guess yes the bottom has already arrived, but the amount of uncertainties you never know if it may see one more dip in Feb. Hopefully March will bring a good reversal. Once we cross 10k mark then there may be no looking back to bottoms like 6k

According to the firm Autonomous Next, the number of hedge funds investing in digital assets like Bitcoin has grown rapidly to more than 100. Since the launch of Bitcoin Futures on the Chicago Mercantile Exchange in December 2017, it shouldn’t be a surprise to anyone why the price of Bitcoin is down 50% from the high.

bitcoin.PNG

Only Retail Investors chase price and buy high and sell low, while the Professionals buy low and sell high. The Hedge Funds have purposely sold Bitcoin futures to get in a better price.

At the moment, there is a war taking place between the buyers (Hedge Funds) and the sellers (Retail Investors) called capitulation. That line in the sand was at $9000. Capitulation is when investors give up any previous gains, by selling, in an effort to get out of the market. Capitulations are outcomes that result from the maximum psychological and financial pain that can be endured by a group before throwing in the towel. The Retail Investors are throwing in the towel after seeing a more than 50% correction in the Bitcoin price to the buyers, the Hedge Funds. With 100s of millions of dollars to invest, we are witnessing an accumulation phase by the Hedge Funds between $6000 and $9000.

The Hedge Funds are loading up and buying from the Retail Investors. But to fill all their buy orders, as the sell orders dry up, price must go down to the next stack of sell orders. We are approaching what I believe will be the bottom of bitcoin at $6000. My first target is $12,000 and my second target is $17,000 over the next 3 - 9 months.

The easy money has been made over the last 12-18 months. With the big boys in the game now, the rules have changes. The question is, are you ready to play to win with a new play book?

This post is my personal opinion. I’m not a financial advisor. Do your own research before making investment decisions. By reading this post, you acknowledge and accept full responsibility of any gains or losses.

bitcoin.PNG

$6060.00 -- What a place to be in! As long as you're all cashed up and in position to pull the trigger. Just to stop the bleeding is a great relief. A sustained up-trend would be even greater.

But just as it turned out to be hard to sell at the top (or get your money where you'd like to have it). In December so many systems were clogged, I gave up. So too it can take time to deploy new capital as well.

bitcoin going down so fast

Like this post and all the positive replies. Only after watching an emotional Richard Heart give up of btc recovery was I alittle concerned. The over all tone of yesterdays US Senate hearing about crypto currency seemed positive. Just have put on the rose colored glasses seeing everything is going to be ok.

Nice job man. Good to see you back in the game :)

Thanks for information..

Maybe, I keep an eye. I still hold everything. Personally I think it's too soon for the crypto burst.

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  ·  7 years ago Reveal Comment