The crypto exchange GDAX, which is owned by coin base just put Bitcoin Gold online for trading. As it was introduced it spiked on very low volume from $3,300s to a peak of $9,500. That's pretty amazing and someone I have been watching on YouTube actually recorded the action live and was commenting on it. Trading was halted and price opened back up near where it was originally, but has since continued to climb ever higher. Here's a chart, which does not show the price spike actually..
Anyhow, Since prices of bitcoin have been so extraordinary lately, I decided to go back and take a look at how bitcoin's most recent crash ended. Here is a chart of that:
If you look at the daily chart you can see that there were basically 3 parabolic run-ups. The first had one red day and continued on higher. The second had one larger red day, and quickly continued higher. There was a very tiny red day after that and some massive continuation, but then there was another tiny red day, followed by a big rejection day. In the following 3 days you can see that the last day was not able to close above the previous rejection point and was followed by a red day as price rejected a second time. That was a beginning of the end and realistically, a technically clear symbol as price could not make new highs this time on a crazy percentage run.
This time, Bitcoins gains are even larger this time than the last run, and we have some important information to look at. Here is the chart as of today, right now.
As you can see we have a crazy run up even for just the part of the year shown. I zoomed in to see the individual days clearer. You can see that the last leg of this run up was very parabolic and had a sharp correction. Two red days and a green day were spent deciding what the hell was going on. Keep in mind, that all this time people are calling it the top, and even I was saying this crazy shit can't continue like this forever and that it needs time to breathe.
This is the toppiest I have seen it look yet, and it makes the most sense because $20k is a psychological level, and the public has finally begun to notice Bitcoin, which is usually the smart moneys trigger to sell.
This year, since bitcoin hit the $10,000 range, it has been pumped on news outlets all over the world by experts that are saying it could go to $500,000 a coin by 2020. Keep in mind that every one of those people are all invested heavily in the things they are claiming will go to the moon. Not to mention, the Futures exchanges have finally decided to come out with a bitcoin futures contract so the biggest players can play. That is a lot of attention. I call this a moment of truth because the next few days could very much clarify the big picture and the next few months for bitcoin. If we get another double top near $20k, that could be the ultimate time to sell before an even crazier crash. My gut tells me that $23k will be an exit point, but that's just an intuitive guess.
Just today, the creator of litecoin said he liquidated all his litecoin to avoid the conflict of interest surrounding his connection to it. It makes sense, but hey, it's also up to $340+ from basically Zero, why the hell wouldn't he sell? Here's the chart:
If you notice, all of these charts are generally correlated. I did say that Etherium and Litecoin all looked like they were primed to breakout again, but they rejected. They all seem to react very strongly negative the moment GDAX caused that flash crash on the exchange.
It will be very interesting to see what happens. I think if we get a crash it will take a long time for things to meet new highs, but possibly a shorter amount of time now because the crypto market is so damn hot to millions of people right now.
Until next time.
P.S. Got my wisdom teeth removed today. A very resetting of consciousness type of experience, followed by a shitload of pain. Feeling a great deal better now only a few hours later. No pain meds yet, and hopefully none in the future.
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