![Bitfinex is down for 7h, what will bitcoin [btc] (btc) do?](http://ohiobitcoin.com/storage/2019/01/DeBIkz.png "Bitfinex is down for 7h, what will bitcoin [btc] (btc) do?")
Published at Mon, 07 Jan 2019 10:15:27 +0000
Bitfinex is down for 7h, what will Bitcoin [BTC] (BTC) do?
![Bitfinex is down for 7h, what will bitcoin [btc] (btc) do?](https://ohiobitcoin.com/storage/2019/01/DeBIkz.png "Bitfinex is down for 7h, what will bitcoin [btc] (btc) do?")
You might be interested in …
Bitcoin Price Analysis: Amid Continuing China Rumors, BTC Fails to Break Key Resistance
When it rains, it pours. Last week, that China was taking harsh measures to reign in their various cryptocurrency exchanges. Several exchanges closed down and others were given a deadline to properly cease trading operations. This news came hard on the heels of recent directives that banned ICOs in China, leading to across the board.
After this latest news settled, bitcoin managed to slightly rally before topping out around $4100. However, early this week, rumors began to circulate that executives associated with Chinese exchanges are being prohibited from leaving China. At the time of this article, BTC-USD is sitting just at $3900 and is showing signs of further pullback:
Figure 1: BTC-USD, 12-Hour Candles, GDAX, Macro Fibonacci Retracement Values
The figure above shows the whole, macro bull run from the $1700s. One important feature of the trend shown above is the 61% retracement down to the $2900s. The retracement down to such a low value shows that sell pressure is very strong in the current market and hints toward bullish exhaustion within the macro trend. Another key feature to note is the following:
Figure 2: BTC-USD, 2-Hour Candles, GDAX, Failed 100% Retracement
An important test of this rally was the 100% retracement of the bear run, post-China news. Sitting just below the 23% Fibonacci Retracement lies the bear run. The test of the 100% retracement is important because that resistance line marks a strong shift in market sentiment. A failure to break through those values shows that, even though there was a strong rally, the market is still bearish in nature and is likely to continue.
Figure 2 also shows several tests and rejections of the 2-Hour 200 EMA (Exponential Moving Average). The 200 EMA is a common tool used among traders to objectively view the state of the market compared to the prior trends. A trend existing below the 200 EMA is bearish in nature, and trends that show support on top of the 200 EMA are bullish in nature.
At the time of this article, the BTC-USD is displaying two failed tests of key resistance levels and its showing little sign of upward pressure. Currently, the trend is sandwiched between the 200 EMA and the 50 EMA. Both moving averages can used in conjunction to gauge just how strong the market is. Like the 200 EMA, the 50 EMA shows short-term bullish and bearish trends relative to the EMA line: Trends above are showing bullish traits, and trends below are showing bearish traits.
Right now, we are in the middle of a crucial test of both support and resistance lines as the market decides where it will go next. A break below the 50 EMA will ultimate show the long-term bearish intent of the market and will lead to tests of the low support values:
Figure 3: BTC-USD, 1-Hour Candles, GDAX, Support Levels for Current Rally
At the moment, BTC-USD is making its third test of the current rally’s 23% retracement values. A break below this line will have bitcoin testing the macro 38% retracement values in the $3700s. If bitcoin manages to break the 38% retracement values somehow, there will be strong support around the $3400s as the 50% macro Fibonacci Retracement values (shown in Figure 1) have historic significance and support.
If bitcoin is going to see any significant price growth within this rally, it will have to pick up some major buy volume and break through very strong, historic resistance values. It’s extremely unlikely that, given its repeated failures to break resistance and the inherent bearish news looming over the bitcoin community, BTC-USD will shove to new highs without strongly testing lower macro support.
Summary:
-
BTC-USD had a strong rally, but ultimately topped out around $4100.
-
At the moment, BTC-USD is testing macro support levels and shows very little, significant upward strength.
-
Should we break support in the $3900s, we can expect a test of the macro 38% Fibonacci Retracement values in the $3700s.
Trading and investing in digital assets like bitcoin, bitcoin cash and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
The post .
13 – Power Rangers S.P.D (End Credits).avi
13 – Power Rangers S.P.D (End Credits).avi The S.P.D (Space Patrol Delta) End Credits, Enjoy!
Deutsche Bank Strategist: Reign of Fiat Money Will Soon End, Will Bitcoin Take Over?
Deutsche Bank lead strategist Jim Reid believes the reign of fiat money could soon end and cryptocurrencies like bitcoin could take over the global financial market.
In a recently released research paper, Reid delve extensively into the unstable fiat currency system and firmly stated that the fiat currency system will highly likely come to an end in the upcoming years.
Reid
“Central banks and governments which have ‘dined out’ on the 35 year secular, structural decline in inflation are not able to prevent it rising as raising interest rates to suitable levels would risk serious economic contraction given the huge debt burden economies face. As such they are forced to prioritise low interest rates and nominal growth over inflation control which could herald in the beginning of the end of the global fiat currency system that begun with the abandonment of Bretton Woods back in 1971.”
Will bitcoin Evolve Into a Competitor Against Fiat Currency
In his paper, Reid essentially criticized the centralized nature of fiat currencies and the ability of governments, authorities, and central banks to manipulate virtually aspect of paper money, including inflation rates. Due to the existence of centralized authorities within the fiat currency system, Reid emphasized that it is vulnerable once it loses its leverage over the global economy, likely triggered by the emergence of decentralized currencies like bitcoin.
“It’s possible that inflation becomes more and more uncontrollable and the era of fiat currencies looks vulnerable as people lose faith in paper money,” added Reid.
He further noted that cryptocurrencies like bitcoin, despite the growing interest from the traditional financial industry in blockchain technology, have the potential to take over fiat currencies and operate as the global monetary system, given their open structure and decentralized systems.
As security and bitcoin expert Andreas Antonopoulos previously explained, bitcoin has an advantage over fiat currencies because it is voluntary. It does not enforce any regulations and policies through violence, and it does not require a certain group of individuals and businesses to use the digital currency for leverage. Anyone can choose to use bitcoin as a currency, a store of value, and a safe haven asset at their will and demand.
For this reason, Reid stated that there exists a possibility of cryptocurrencies eventually competing against national currencies and the fiat currency system.
“Although the current speculative interest in cryptocurrencies is more to do with blockchain technology than a loss of faith in paper money, at some point there will likely be some median of exchange that becomes more universal and a competitor of paper money,” Reid noted.
Long-Term Growth of Bitcon as a Global Currency
The long-term price targets of prominent financial analysts like Max Keiser at $100,000 assume that bitcoin will evolve into a major global currency and penetrate the market of gold. If bitcoin can compete with fiat currencies in the upcoming years, the market valuation of bitcoin would likely be able to reach a few trillion dollars, which is an optimistic long-term indicator for bitcoin investors.
The post appeared first on .