Steep rising price

This fork is pretty steep even for bitcoins, although on this timescale doesn’t look too bad. Trust me it is steep.. It shows the price during the last couple of weeks more than doubling from about $200 up to $440

How high will this trend go? One thing about bitcoins is that sometimes the corrections are virtually flat instead of down!!! The result being that those who sell wish they hadn’t eg me. Hate being short anything bitcoin in this kind of run.

Its easy to imagine there could be a severe correction at some point. the higher this price goes, the bigger the eventual correction I would assume. One might have thought the same thing last March though when price was at $50 and be right, but if you hadn’t bought in you would have missed the rise up to $266. However in April you might have bought in at $200 thinking this could go all the way to $500 only to see them fall to less than half what you’d paid earlier. Good job this profound wisdom from Captain Obvious is free.

Where are we sitting at the moment on the next big climb up? Can this reach $1000 ? Wish I knew.. πŸ˜€

One thing is for sure, I’m not going to take my mums advice and cash it all in now to put it in an ISA !!!

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10 thoughts on “Steep rising price

  1. It’s madness! I don’t see what is driving this price apart from media coverage and general excitement, I’m longterm long on Bitcoins but we have to be overvalued at the moment.

    Will be breaking $500 a week after $400 was broken at this rate (but perhaps I’m just bitter at losing some BTC on my ‘clever’ trades).

    https://www.tradingview.com/e/LCYm5NgQ/ is my current chart – There’s some long term channels there were converging on $450 for both 1 day and 4 hour ticks. We’ve now gone through that so perhaps $450 will form solid short term resistance?

    1. Tried to edit your comment so the chart is embedded but doesn’t seem to have worked. Interesting ideas thanks for sharing. Makes me wonder if I should bust out the log charts again start comparing bubble to previous ones.

      1. I have published the chart at: https://www.tradingview.com/v/BD3iAreJ/

        Don’t think I can embed an image in the comment.

        Looks like $450 has formed a good resistance though, but I have a feeling we will go through it soon. I find it interesting that we’ve hit that at almost the exact point a trend line from the start of this year crosses a trend line from the start of the original rise to $35 in 2011.

        I’m also UK based (South London). Are you into any alt-coins at the moment?

    1. Unless you’re talking about inflation of say energy prices, which are up about 8% but that s nothing to do with central banks I’m sure its all just companies being greedy πŸ˜‰

      1. Yeah, but no one ever mentions house and energy price inflation πŸ˜€

        House price inflation is definitely linked to Govt. and central banks (about 40% of the UK economy is housing so we need it to be doing well).

        In terms of energy price inflation, it’s not directly central bank related but I also don’t believe that it is directly companies being greedy. There are a couple of factors at play:

        1. We have very little on-shore energy generation in the UK so we have to buy from International markets and the wholesale prices are going up like mad (primarily due to increased demand from India, China, etc as well as us passing things like peak oil production).

        2. “Green taxes” are pushing up the price of cheaper energy production to encourage more green production methods. The problem with these is that they are unreliable and can’t react to demand (they are either supplying power or not) so to store this power for the peaks in demand would require a very large amount of batteries which isn’t green at all.

        3. Quantitative easing currently the Fed are printing (well buying bonds to inject cash) about $1.7m a minute and the BoE have done about Β£375bn IIRC. This is pushing inflation, but at the same time none of this money is reaching businesses or consumers in the way of above inflation pay rises. So even if we take a 2% figure then compound that over the last five years we are looking at a big disparity in the inflation of the price of goods vs. the earning power of the people. This is why credit card debt and short term loans are at an all time high – The “recovery” at the moment is debt fueled and housing fueled, housing will pop again in a couple of years and then we’re stuck with the same credit crunch we had in 2008.

        We are going to be stuck with unreported inflation for a while, as it is the only way to make all the debt that everyone has and the Government has serviceable.

        What will be interesting is to see what China, India and Africa does over the next 20 years. Unfortunately China has bought up most of Africa and their unique take on capitalism means most of their bad debts are just written off from the major companies.

  2. Good points, housing still over inflated for sure, energy and resources increasingly limited, next big credit crunch is a scary thought.

    Accumulation of gold by China and Russia is happening now, seems the US dollar is quietly being dropped with China wanting to move to some kind of gold backed currency. Time will tell I guess,

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