Downloading...
Download

Erratic

Strange movements in the Bitcoin's price.This is a chart of the Bitcoin's price in USD of the last two weeks. We can see unusual patterns in it that makes it difficult to predict the direction of the price of the Bitcoin for the next few weeks. While there is enough evidence to forecast a bullish development of the Bitcoin, the bullish forecast did not get confirmed. A triangle is a formation that is usually followed by a continuation of the ongoing trend. I did expect the price to exit triangle A in direction of the blue arrow. Instead, the price broke the lower border in direction of the red arrow. Following this downwards outbreak, the price of the Bitcoin went up from 12050 to 17234. There, it was already exhausted and started to move downwards, building another triangle B, which lets us expect a downtrend. While the uptrend is still valid, an outbreak of triangle B on the lower side of triangle B would change the outlook of the Bitcoin massively. Instead a comfortable journey up to 22500, we would see a free fall as deep as 5568. Why is this uncertainty? There are three forces influencing the price of the Bitcoin: 1. There are the investors who are interested into a permanently rising value of the Bitcoin. 2. There is a growing demand for Bitcoins. As there is a maximum of 21 million of coins, the growing demand for the coin will increase its price on the long-term. 3. The governments of the USA and Bulgaria own sized Bitcoins for 3 billion US-Dollars. They want to sell them and this will give some serious pressure on the Bitcoin and may even lead to a "massacre" of its price. This constellation will lead to erratic and unforeseen price movements of the Bitcoin in the next months. Whenever many buyers are on the market, the governments will flood the market with their sized Bitcoins. This makes it difficult to predict the price and otherwise reliable chart signals may not work during this time.
BITSTAMP:BTCUSD
by luckyhelper
3