Gold !

I don’t even know where to start talking about gold, it defies belief that gold continues to plummet and is now making new 5 year lows at the same time as demand for the physical stuff is soaring and debt laden economies globally continue to debase their currencies and accumulate yet more debt to service their debt.

To believe some people gold is now heading not only sub $1000 but down to $700 or even $400 you name your low price and someone is predicting the bottom there.

Gold is manipulated by the biggest most powerful entities, this is strategic and to keep the fiat ponzi corrupt monetary system alive as long as possible. Is there anyone out there who can deny this with a straight face?

In fact I’m not really going to try and talk about gold manipulation any further but instead look at the charts, bearing in mind that the lines on the charts have most likely always been heavily influenced by periods of manipulation going through the ages.

Heres a chart showing 1 month candles.

I’d say it looks like gold may be heading to the bottom of this channel which I’ve marked, corresponding to a price will fall to about $1000. Look for the media to gleefully leap on it if it goes slightly below $1K. Will that be the final capitulation where the weak hands are finally shaken loose? If not then I guess gold will continue this miserable path down along this bear channel. But for how long can gold remain bearish? Is the economy really recovered? Is the Fed really really going to raise rates?

Looking back, the world came off the gold standard in 1971, which incidentally, when announced was supposed to be temporary although here we are stuck with it more than 40 years later.
(Funnily enough zero interest rate policy and QE is supposed to be temporary too in response to the financial crisis of 2008 but so far seem to be continuing quite merrily too.)

Heres a look at gold price over that period, again with 1 month candles, starting in 1971 through to today.

With the world moved away from gold to pure fiat, shortly after gold went on a huge bull run rising from $35 as investors realised the currency was now totally unbacked and therefore would not hold value. However in the mid to late 1970’s gold suffered a bear market. Eventually the bull came back for a second even bigger leg up to the top of the channel I’ve marked finally topping at about $850 (remember that’s valued in 1970’s dollars not todays dollars).

Could we be in the same place today as that time of the bear market in the mid 1970s? Obviously with my ‘You are here’ label, thats what I’m thinking in terms of, but of course this is only an idea I want to put out there. Target for this idea is gold to the approximate top of the channel and price of $10K.

Anyone for tea?

Its time for an update to my blog, in what will probably be first of two posts, (I also have some ideas about gold I want to put out there). In any case an update feels a bit overdue as quite a lot has happened since my last post.

So, staying on topic of bitcoin for now. Last post I felt confident we’d soon break $300, which we did however now we are somewhat below $300 again. How did that happen?

What else? Well there was a massive crash down to $150 on BTC-E !!!! This is not the first time it has happened, there was also a flash crash on the same exchange, back in February 2014

Heres a look at those two flash crashes on btc-e

In a way this crash has spooked me a little bit, the first one fell a lot further but stopped at a line which I use as the absolute floor but this latest one although smaller drop went under that floor. However maybe I shouldn’t read ‘too’ much into it ..

Whats going on in btc-e, why these crashes? From various different theories I’ve read it seems likely its enabled by the low volume on the exchange. Some traders have suddenly found sell orders triggered (by some large dump?), causing a cascade of selling and these people to lose out big time and in the mad rush unable to buy back in quick enough. Whatever happened it does seem very shady and makes one wonder if some insider knowledge is involved in this moves. Anyway the fact is someone has gained some very cheap bitcoins at the expense of others who probably never dreamed those sell orders being triggered. If there are other plausible reasons this happened I’d be interested in the discussion.

In the aftermath of this flash crash I have decided to revert back to using Bitstamp for my charting for now. I previously used Bitstamp and abandoned it when that exchange seemed to have its own difficulties. It makes me ponder which exchange is best as a proxy for bitcoin in general? Maybe I should be looking at one of the big chinese exchanges? For now, and for better or worse I’ve settled back on Bitstamp.

This also give the opportunity to remove all my trendlines and start with fresh eyes on a blank slate, not that theres much there so far.

Anyway there is this nice cup shape with whats looks like a handle forming.

If that bullish pattern does play out we might be looking at some price near the top of the channel I’ve drawn in. But maybe not before bitcoin drops further to complete the handle…

In reference to my last post I don’t really think there is any particular significance to $300 except that in US dollars it happens to be a nice round number. Being back below $300 looks to me like a needed correction after some fairly large bullish moves. Hopefully before long the bullish trend continues.

Bitcoin poised to surpass $300

Forgetting all the craziness in alts for a minute bitcoin is quietly making nice gains. With the bear trend beginning to disappear into the distance the way looks clear for bitcoin to continue upwards.

Heres a view from btc-e with 1 week candles and log price scale

Lots of green candles in a row sometimes heralds the start of a new mania but I think it will be a bit more subdued than that. I’m looking to see if there appears resistance in the middle of that rising purple channel. If bitcoin goes through that easily then the top of the channel may be visited which would be somewhere above $400. In my view its not too far fetched to anticipate that but lets get above $300 then middle of channel first.

Litecoin rampage

I’ve refrained from posting about Litecoin’s bull run so far but finally decided to take a look at see whats up. Note, I don’t own any Litecoin myself and not planning to buy into this rise so I only look out of curiosity.

Here’s a 1 day chart of Litecoin versus Bitcoin, ie LTCBTC from BTC-E exchange. Rising line means Litecoin rising in value relative to Bitcoin.

Jolly hockey sticks! I describe this as a rampage. Thats my technical term for a vertical rising chart. If you converted bitcoin to litecoin in the first half of May then congratulations! Thats like gone up by 5 or 6 times in value! (so far..) and thats at a time when Bitcoin itself is also up about 20% against the US$ !!!

So why this price rise? Well I can only speculate but for one thing Litcoin is due to have a ‘halving’ in near future which may be a factor. * Meaning of course the rate of minting of new Litecoins will drop by a half. I think it will be Litecoin’s first halving in fact (but might be wrong).

Another reason ‘could’ be that some holders of bitcoin see risk in the ongoing block size debate and lack of clear resolution about how to resolve and have decided to jump ship to Litecoin for now.

Maybe Litecoin is also benefiting from Greek referendum and Chinese stock collapse. Does Litecoin have same restrictions as Bitcoin in China ?

And many, which I don’t want to be a part of, are the herd stampeding in late looking for profits. However I also thought that when Litecoin was at about 0.012 less than a week ago and have missed large profits since as it continues its phenomenal rise. Knowing my luck I will finally be overcome by greed and go in just before it crashes.

Heres some more charts, similar chart zoomed out but with 1 week candles.

We can see that Litecoin is prone to these massive spikes up with at least 2 comparable if not bigger spikes in the past. On both occasions followed by massive crash. Is this one going to dwarf those that have gone before? Wether it does or not I don’t know but I do feel certain those that buy in too late will be left holding the bags which is the risk I’m not willing to take.

I’ll finish with same chart but this time on log price scale.

On this scale you can see that Litecoin had another huge spike starting from lower levels which wasn’t so noticeable on linear price scale. For historical interest I’ve marked in a bullish channel I used to look at which I lost interest in after Litecoin fell through the bottom of it. Similar to Bitcoin, Litecoin has also fallen below what used to be solid floor on log scale.

I’ve also added in a flat/bearish channel which I just spotted and ominously Litecoin is near the top of it.

For me we are already in the danger zone.

Blatent Intervention in Silver

With the Euro currency, one of the biggest currencies in the world, facing an existential battle in the aftermath of Greek Referendum you’d expect a bit of a pop upwards in Gold and Silver wouldn’t you? … Wouldn’t you ? You know a safe haven form of money like bitcoin.

What we get is silver down 5% to a 5 year low !!!!

Unbelievable MANAGEMENT OF PERCEPTIONS ECONOMY. This is sheer unadulterated MOPE. So blatent in your face, out in the open. It is totally obvious that Gold and Silver cannot, CANNOT be seen as alternatives to the monetary system. This intervention is so obvious, so much hubris they just don’t bother even trying to hide it anymore.

Disgusting, the lies, the mope the to hold this corrupt system together it stinks.

2015-07-07 19:00:33 - Blatent MOPE in aftermath of greek debt referendum

The end of the bear trend unfolding

On the same day the Greeks voted no to austerity conditions imposed on them, bitcoin has broken through the formidable upper resistance on my btc-e log charts. Not a total surprise, on chinese exchanges the corresponding trendline already fell some time ago.

On BTC-E it looks like this …

For me this is a huge bullish signal for bitcoin and I think also illustrates the contrast between the banking system and the ideals of crypto currency. Capital controls, bail-ins like Cyprus with banks. Or being your own bank outside that system, bitcoin (not forgetting physical gold, silver too). Apparently many greeks have tried to store value outside the system by buying cars which was hardly ideal but worked quite well. A shame more of these people don’t already understand bitcoin. The word needs to spread among greeks and everyone else that leaving money in the bank is a huge risk.

Perhaps we are about to leave or are now leaving what I’ve called ‘the accumulation zone’ but its not too late to buy in as long as you prepared to hold longer term.

Disclaimer – bitcoin is still risky and uncertain how it will scale as it grows so don’t bet everything on it a wise move is to also hold physical gold and silver, fine art, land, anything thats not shares or money in a bank basically. These are my opinions not investment advise.

Bitcoin rise amidst Greek Default Fear

If bitcoin price rise is connected to Greek Default it kind of looks like bitcoin is … a safe haven. Like gold only less suppressed and manipulated. Therefore better?

Despite scary stories about Greek default, the fact is a Greek default is not so scary anymore because the ECB, European Central Bank is now allowed to print Euros by the trillion. Great news if you like being part of a stable (but rapidly devaluing euro).

With Euro, GBP, Jap yen and US$ all printing by the trillions. Gold has erm gone down a bit!!! Lol what? !

Life inside the matrix.

In other news New World Order protagonist George Soros is outed being the puppet master behind Ukraine uprising. I think its time George goes away. Go away George.

Anyway heres the chart from BTC-E, on log scale with 1d candles.

Great news that recent price rise has put bitcoin above the red dashed line of resistance which has held bitcoin all 2015 so far.. As extra bonus, also bitcoin is also up back above lower purple line of my bull channel. If you want even more bullish technicals the weekly SAR has flipped to bullish now too as noted by Hyena in the forums.

Interesting also to note where that spike up ended, right on line which used to provide support. Support turned to resistance. Which I interpret bullishly as further evidence the bullish slope is still working and intact.

The real battle still to come is the upper red line which will most likely provide stout resistance, and as noted by James in comments will quite possibly form a wedge constraining price. If (or in fact when) bitcoin gets above that rapidly falling upper red line I call that the end of the bear trend. Until then we are still in the accumulation zone.

disclaimer: blah blah.

Heres a zoomed out version of same chart to add more perspective.

The end of the end of the bear trend ?

Bitcoin has fallen (some might even say crashed) down below my “End of the Bear Trend” channel .. So is it now the end for the “end of the bear trend” ? Are prices doomed to continue falling as bitcoin falls to a spectacular demise?

First heres the damage on btc-e log price scale.

As shown bitcoin is now below the bullish channel I have been following. However not unsurprisingly my next move is simply to look for the next lower parallel following same slope up., perhaps where I have added a new dashed trendline.

Despite numerous threads in the bitcoin talks forums describing this drop as a crash, really it is not a crash (not yet at least). In fact viewed objectively it looks like the market is not up or down but rather horizontal, you might call this a boring phase. Bullish and bearish impulses are cancelling each other resulting in … a stable price. (Dont get too excited about stable price yet I consider the bitcoin market is still tiny, either upwards (or downwards) big moves will occur soon enough.

What is not helping matters is the debate (feud?) regarding blocksize. It appears that uncertainty could be hindering things. Bitcoin opinion is split on wether to increase the block size now before blocks start being too small to cope with increasing demand or to continue as we are and hope miners muddle through, perhaps using increasing fees as a way to try and prioritese transactions. This split could lead to an actual split where bitcoin separates into two forks. I have yet to hear why bitcoin cannot have dynamically sized blocks which are exactly the size they need to be, but presumably there are reasons it needs a hard coded size.

In all honesty both possibilities fail to inspire me with much bitcoin love. (Will this open the door for some other alt to pick up the baton ?). However I think bigger block sizes will be received well by the market (although at cost of further centralisation because few people will cope with storage of such a hugely increasing blockchain which is already becoming a little too big to easily sync and store)

Regardless of that debate, from pure price perspective we are still some way above the recent bottom. I have no reason yet to expect that to be broken to downside. Heres another chart again on log scale but zoomed out this time.

I normally show the trendline supporting “the bottom” on a linear price scale but heres an attempt to show it on the log chart, which results in a kind of flattening curve on log scale.

The other main feature of this chart is the very well defined bear trend resulting from all time high and subsequent bubble collapse, shown with red trendlines.

The end of the bear trend will be the final defeat of the upper red trendline. Before that there is the red dashed line to suprass. Although these lines have provided very stout resistance they are falling rapidly and I expect will be beaten when price is too low to fall much farther. Bitcoin block size debate finally being resolved might provide a spring board to finally beat those trendlines.

What’s the End Game for the Bankers’ Cashless Society?

The war on cash is real. Bankers want to start forcing negative interest rates on us, to force consumers to spend instead of save, ie to borrow even more debt and become even more enslaved. This means your money will shrink if left in your account. If people have the option of avoiding negative interest rates by withdrawing cash and sticking it under the mattress that wont work. Even worse for the bank that would cause a run on the bank. So cash is there as a barrier to bankers forcing even more debt on us by these negative interest rates. This is why they want to remove cash.

If you notice there is a campaign in the media to make cash seem like it is old fashioned and not needed because it is inconvinient, or expensive to handle. These are lies, real reasons are as outlined above.

This will all be positive for stores of value like gold, silver and bitcoin, unless these are somehow outlawed. (won’t suprise me if they try)

Anyway heres some more ideas on this topic from JS Kim. If you are not familiar with his work at SmartKnowledgeU I highly recommend checking it out.

By JS Kim

In these newsletters, we’ve been informing you of the extremely aggressive global banker push to enforce a cashless society upon us. In fact, the Denmark Central Bankers have already stated that they will stop printing new coins and new paper money in 2016 and that, starting in 2016, all vendors in Denmark can legally refuse to accept all coins and paper money for their goods and services! A top Citibank banker, Willem Buiter, has been urging the US government and Fed Reserve bankers to ban all cash transactions in the US as has Harvard professor Ken Rogoff, and most recently German economist Peter Bofinger has joined the bandwagon in calling for the Bundesbank to ban all cash in Germany. Is there anyone that is not calling for a ban in the use of cash in this world? And why are bankers so adamant about banning cash after hundreds of years of allowing cash as money but making all other forms of competitive money such as gold and silver illegal? What is happening in globa l currency markets right now that have they become so adamant about banning cash now? For answers to these questions, watch our video below.

Any logical person would conclude that this vocal and aggressive banker-sponsored movement points to enormous frailties and stresses in the current global banking system to which most are still blissfully unaware. And why have these frailties arisen? The answer clearly is because bankers have engaged in so much fraud with their ZIRP, QE policies and currency wars that the entire existence of the global fractional reserve banking system is now being threatened with terminal failure