Settling at $120

 

Been a little while since my last entry so thought I’d take another look at the bitcoin charts. Heres a 2 month log chart showing the familiar picture with the all time high and the action since the fall in price ..

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The trend line I was looking for support at held for a couple of days but then without any fuss gave way, which I have shown as a dashed line. This is reminiscent of the way the previous down trend I looked at also gave way in similar fashion.

Where does that leave us now? It’s looking like the wild swings in price and between bullish and bearish sentiment are fading and the price is settling at about $120. Its hard to know what might cause the next big move up or down. I’m not going to try and predict it. Maybe the market has found a fair price for a bitcoin for todays economy, at least until the next Cyprus style black swan event or until the American government decides to take down Mt Gox or whatever.

If you are already sitting on a bunch of bitcoins perhaps its time to start using some as money to buy things. Bitcoins long term success will depend on how well its economy grows and matures.

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4 thoughts on “Settling at $120

  1. The trend line is halfway between horizontal and the lower dotted line. There will be another spike in about 9 months. Until then, BTC will rise at about a 550% annual rate until 2019.

  2. ^^ Should say “until then, and afterwards”

    Note 1. There will be more spikes and troughs along this general trajectory as various investment sabotages are attempted. Hint: it won’t work.

  3. Prices will top a million in 2018. They’ll even out somewhere north of there . . . around 3.5 million in 2021.

  4. I worked out a rate of increase of 10 times increase in price every 16 months a little while ago based on the long term trendline I look at. I think my estimate gives similar numbers to yours, but that’s only if the long term holds of course. The biggest threat to bitcoins is ripples in my opinion, going to write a post on it at some point.

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