Resurgent bitcoin

Bitcoin is up over 7% today on Bitstamp, taking price over $600. We’re still seeing support and resistance on the sloping lines I’ve been drawing for a while now. Heres a nice view of the latest chart showing last couple of weeks strong rally with 4 hour candles.

I suppose many people will be wondering what is fuelling this rally? Well I have to admit I’ve turned on my trading bot to pump up the market. I’m planning running it up over $4000 before collecting my gains!

Actually I think it might be a lot of pent up buying pressure from investors who’ve been waiting in the sidelines for the bull to finish. There have been several signals lately that bear phase is finished, like the break out from that wedge in log view for example. When bitcoin passed over $1000 a lot of serious traders will have started paying more attention, I’m guessing many will not have been inclined to buy into the top of a mania and have been waiting patiently, as I wish I had.

Theres huge upside potential in bitcoin I’m not really sure where resistance is going to transpire next. Maybe one of the round numbers like 700 or 800.

Looking at some other cryptos heres that Litecoin priced in bitcoin chart again. Green dotted arrow is showing what happened last time. Will it happen again? And if it does, will the huge green candle follow it again?

If this ratio drops down to 0.01 it will be very tempting to switch some bitcoin into litecoin.

I’ve never posted about Peercoin as far as I remember but I do look at it with interest from time to time. Proof of stake is an interesting innovation. One thing thats put me off is that I’m not sure I know enough about it though, eg how the quantity is regulated, probably I just need to do some more research to understand it better. Peercoin had a nice rally a while back but now is dropping quite fast. The ratio with bitcoin looks like this.

As with many crypto there was a huge spike during the last bitcoin bubble where various alt coins suddenly shot up even more than bitcoin (in percentage terms). At the moment the ratio is back down to levels which correspond to previous lows. I wonder if peercoin is due a rally.

Heres the alt-coin which has really grabbed my attention recently. I mention Darkcoin of course, which has been mentioned a lot in various media and is rising very rapidly in price. This coin promises to fill in the piece which bitcoin lacks, anonymity.

I don’t have access to Darkcoin on Trading View but bitcoin wisdom shows DarkCoin data from the MintPal exhchange.

Unlike most other crypto which are losing ground against the resurgent bitcoin. Here is a chart showing the rise of DarkCoin versus Bitcoin.

After peaking at about 0.027 problems in the network caused a fork in the Darkcoin blockchain and price fell to about half that. As far as I understand those problems are behind now and price is recovering. If darkcoin full fills its potential I think it could rival bitcoin. Certainly the Dark Send anonymous payment mechanism is a huge thing in its favour.

9 thoughts on “Resurgent bitcoin

  1. Been following your work and lurking on this blog for quite a while, but this is my first post.

    On the subject of altcoins. Have you considered that there have been a shit-ton of new entrants to the altcoin market since the last Litecoin rally? Granted 99% of these coins are pre-mined scam coins that will go nowhere, but the buying interest will still be spread over much more than just Litecoin this time round.

    Also, another consideration is the fact that Litecoin and all other scrypt coins are starting to get mined with ASICs this summer. For me, this removes one of the big reasons for Litecoin to exist. I believe that with the introduction of ASICs comes the likelihood of further centralisation of mining power. Litecoin has already had recent issues in this regard:

    This is the reason that I like Vertcoin (VTC). It’s a coin that is setting out to be what Litecoin could and should have been.

    1. Thanks for commenting, I learn a lot through what people tell me in comments, which is one of the main reasons for this blog.

      Its true history doesn’t have to repeat. I’ll check out Vertcoin, at the moment I don’t know much about it. The thing I like about Litecoin is that is has quite a big tradition if thats the right word, many others are so new that still a bit unknown. However that link you shared is a concern, didn’t know that.

  2. Interesting that every up move since 450 so far has been a straight line up followed by a period of consolidation (no pullbacks or dips). Anyone who missed the buy at 450 still hasn’t had a chance to buy in (ie there are still people on the sidelines). Do you agree with this hypothesis and which would make it even more bullish?

    1. Dam I’m not in the top 100

      Yes I agree really, sometimes bitcoin doesn’t pullback and just keeps going. Looking like this could be one of those times, not promising anything though.

  3. Still thinking about willy report. Last april and november run-ups have been manipulated by bots. If buble is coming up (without insider pumper bots), price won’t go high like a skyrocket.
    Price would take a bit more time to reach summit and would “respect” a bit more technical analysis patterns (as more and more traders are taking part in bitcoin).

    A hypothesis is that we gonna see price going down for the next few days because yesterday price touched top of the channel. Pullbacks happen sometimes and another one might come in two days or three.

    1. Thanks for the chart, I’ll keep an eye on that channel, ie steal the idea. 🙂
      Its apparent on Bitstamp too, although bottom line isnt quite as nice fit.

      Be interesting to see if pullback happens or bitcoin just steamrollers up through that top line. Very hard to predict I’d say, will just wait and see.

      I suspect bitcoin might still be prone to overenthusiasm in the next bubble too. I think it needs to grow a lot more before the bubbles stop happening. Even without bots all it takes is some serious money to decide to try and accumulate bitcoins on the open markets. Bitcoin is still small compared to big finance. But who knows I’m just pondering out loud…

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s