Although I have briefly mentioned Cloakcoin previously in my blog I feel it is high time for a more detailed post. At the start of July, I said “Cloak is another one which has caught my eye as potentially could be huge, unlike darkcoin and some others which use coinjoin transaction mixing technology, Cloak aims for a different method of anonymous transaction which may end up becoming completely decentralised”

Since I wrote that I only began to like Cloak more and more. Unlike my hasty assessment of Darkcoin, perhaps Cloak will be the real deal.

Heres a nice article from deepdotweb which explains some of Cloakcoins ambitious aims.


Cloakcoin is a new coin ecosystem designed to replace deep web marketplaces and CoinJoin applications. Cloakcoin is superior to previous attempts at anonymity because it offers comprehensive, trustless decentralized anonymity to cryptocurrency users. The three-pronged Cloakcoin ecosystem includes anonymous transactions using Proof of Stake Anonymity (CloakSend 2.0), a secure wallet with a built-in currency exchange, and a decentralized marketplace.

Full article here cloakcoin promises holy grail cryptocurrency anonymity

When I first heard about built in marketplace I was slightly skeptical thinking it sounds a bit like an unnecessary frill, however on further reflection it could be a bit of a game changer. There is no single point to ‘attack’ unlike, for example, the silk road market.

Since my own mention of Cloakcoin, here, it has proceeded to quadruple in value relative to bitcoin, rising from around 0.0003 to about 0.0015 where it stands now. (Which in a way I am spewing about as I haven’t followed my own advice and remained holding Darkcoin, which is still falling).

I was intending to post a chart showing Cloak on Mintpal using Bitcoin Wisdom website for the chart but encounterd a few difficulties so here instead is the link for the live chart.

There is a lot I like about Cloakcoin, it appears to be very undervalued, flying under the radar so far. Unlike first mover Darkcoin, cloak has received little publicity. Although more scarce than darkcoin is still nearly 10x cheaper. But bear in mind these pearly drops of wisdom I have learned to my cost. As with all new alt-coins there is a LOT of volatility, the competition is fierce and many new coins have their moment being pumped only to then fade away. Having said that Cloakcoin looks very promising and I dont see much risk in getting hold of a few at these cheap prices then simply hold onto them long term. As with any risky investment, which goes for bitcoin too, only invest what you are willing to lose.


Managed to upload the chart I referred to earlier, here with 12 hour candles

Bitcoin Drop Out – update

As an update to last post Bitcoin Drop Out, heres the latest view of the bitstamp chart, again showing 1 day candles.

The wedge I showed previously has now resolved downwards with price falling down to about $580. Now I’m looking for support around this price level which is quite a good test of my pitchfork hypothesis.

If the fork doesn’t hold, I would look for next support line at about $530 which I located with some parallel trendlines matching the slope of the pitchfork.

Lets see how it plays out

Bitcoin drop out

In the end it didn’t take long for bitcoin to drop below that pink trendline marking the bottom of large bullish channel. To me its looking increasingly likely that price volatility will remain subdued for a while yet, which is an idea I also portrayed in my last post.

Heres a look at Bitstamp with 1 day candles going back to the April low.

As mentioned, bitcoin has dropped below my lower pink trendline, which is now drawn as a dashed line.

I have now added a new inside pitchfork joining the most recent significant low with the last high. Perhaps this gives a new slope for my trendlines? In blue I have also marked wedge pattern which currently constrains price. Whether it breaks up or down I will be looking to see if support or resistance manifests on the trendlines of that fork. I have a feeling there will be quite strong support around the $600 level if price starts dropping.

Although the fork I’ve added slopes upwards keep in mind its just an early idea sketched in after failure of the pink channel, longer term I still think a grind downwards might be on the cards.

Testing trendlines

In last post I highlighted the lower pink trendline as key line to watch. Jury out but it looks like it was briefly broken but may have held afterall. Bitcoin is currently sitting back above that line.

Heres bitstamp with 4 hour candles

Zooming out to chart with 1 day candles showing last two bubbles gives another perspective on that pink channel. If the pink channel holds for a few months we would see steady gains but might not reach new all time highs until next year. Although when does bitcoin stay in any channel for a length of time, particularly in linear price scale?

Eyeballing the flat period after the last years April bubble I wonder if the pink channel is about to fail and we enter a gradual grind down. That last test was not really convincing although in the end won out. Will it pass the next test? Or might it end up looking a bit like the area I have sketched in after the last April peak with a question mark? If that comparison has any merit it could be quite a long boring flat period still in store for bitcoin.

However, for yet another perspective I have been playing with log chart again. As you probably know I did not like the way my beloved log channel failed, so my solution is simple, I made a new log channel!

This time I have defined the slope by the last two peaks rather than the points I previously used on bottom of troughs. Creating a channel this way gives a new bottom trendline which we are still sitting quite well above. If this situation plays out a bit like the arrows I drew in then the slow grind down after the pink channel fails might not last as long as feared.

In the end I could just as well scatter some tea leaves and try and interpret them, but drawing lines on charts is fun. My prognosis is that likely to see the pink channel fail, then enter a boring grind downwards. Eventually the patient may well be rewarded with spectacular moves up.

Why CoinFinance is the Go-To Investment Tracker for Digital Currency

Unlike my normal posts this time I am passing on some information about CoinFinance, a new website offering trading and accounting tools to track the value of your crypto currencies. If this sounds interesting to you read on. Note: This is not an endorsement from AFBitcoins


Why CoinFinance is the Go-To Investment Tracker for Digital Currency

CoinFinance is a professional cryptocurrency portfolio tracking application that supports more than 300 alternative coins. It features a range of tools that are designed to help investors monitor daily changes in their digital currencies, as well as determine their total coin wealth in multiple currencies (Bitcoin, US Dollar, Chinese Yuan and Euro). This application is a reliable resource for members of the cryptocurrency community; aside from in-site tools like a currency converter, a list of gainers and losers and a mining calculator, it also features a list of external links to the latest news and top stories on bitcoin and altcoins. CoinFinance is a one-stop platform that helps cryptocurrency investors make timely and well-informed decisions about their portfolio—all for free and with assured full anonymity.

Price Quotes, Charts, Coin Market Cap and Blogger Tools

Investors have to know how to analyze cryptocurrency markets and understand the fluctuations in coin values over time. CoinFinance presents real-time information as well as aggregate and disaggregate daily, weekly and monthly data that are essential in deciding when to acquire, dispose or hold coins. Users can easily search for price quotes using the search tab in the header. The home page also features a bitcoin price chart displaying three different bitcoin trading schemes (CoinBase, BTC-e and Bitstamp) with corresponding change percentage.

The home page also displays the gainers and losers chart on the right, the coin market capitalization ranking on the left, and the four most popular daily cryptocurrencies below the ranking. These lists and charts are all interactive; clicking on a coin will lead to a specific and detailed list that includes the value of the coin in different currencies, mining difficulty and coin circulation. Portfolio owners can track coins by simply adding them to their portfolio through the “add to your portfolio” button.

CoinFinance is an enriching resource not only for serious cryptocurrency investors but also for bloggers on business and finance. The platform has a section on widgets, which allows site visitors to copy codes for coin prices as well as winners and losers for embedding in external websites. The coin price widget can be customized to display information on a particular cryptocoin, including its current price in the currency selected, its highest and lowest values for the day, and its price movements in the last 24 hours. At the bottom of the page are links to coin prices and currency information on Bitcoin, LiteCoin, DarkCoin, Peercoin, Dogecoin, Blackcoin, X11coin, Supercoin, IsraelCoin, Quark, VertCoin, FeatherCoin, MegaCoin, AuroraCoin and PotCoin.

Another look at bitcoin

Having been offline for a while, its about time I posted a bitcoin update. Heres a look at my latest bitstamp chart with 1 day candles.

Main thing to watch appears to be the pink line showing the bottom of the large uptrending channel. From bullish perspective I would be hoping to see a big bounce off the bottom pink trendline. However I remain uneasy about the way we have dipped under the log trendline I liked so much, shown approximately with thick dashed line and wouldnt be too surprised to see that bottom pink line fail as support too. I guess we’ll find out in the next couple of days.

In comments of my previous bitcoin post CB has shared a nice view of the consolidation of this bubble as comparison to previous bubble. This is a hypothesis I quite like which is we may see a final bearish wipeout prior to sudden moves back to the upside. Heres the link if you missed it.

Gold fork

In gold this bullish fork still looks valid however bottom is about to be tested. Green blob shows where I would be looking for support in gold, fall to about $1290 looks likely.

Zooming out looks like this.

As usual silver is moving similar to gold, down when gold goes down, up when gold goes up, except in more exaggerated and volatile fashion. If silver has no monetary properties but gold does, is that not a wierd co-incidence? Why would silver the metal with allegedly only industrial uses do that?

Theres not much evidence for a similar fork in silver however I have sketched one in anyway.

In both gold and silver I remain convinced that the bull market is resuming.