The silk road coins have been auctioned, and all sold to one bidder. In the process bitcoin has been almost officially given a stamp of approval from US Marshals as fungible units of exchange. Looks like the market approved of this result with prices shooting up towards $650. Heres bitstamp with 4 hour candles.
The area around the bottom of the pink channel, marked with green blob is where I hoped for support once the log trend line had been broken and we did find it. The line marked with a green arrow looks reassuringly distant now. But what of the log trend line which was rudely violated? well I don’t know maybe its a blip, or perhaps not… I sure don’t know.
Moving onto litecoin, heres a look at the litecoin/bitcoin ratio which I’ve often referred to in previous post.
Is it just me or is litecoin starting to look cheap? I’ve updated the chart since last time very slightly to show what looks like a very wide channel aligning the last two peaks and the last two drops.
This time litecoin’s fall is accompanied by a story, the backdrop of which is that ASIC mining has removed the one reason to buy litecoin. Centralisation plaguing bitcoin with the advent of asic mining will now move to litecoin too. New alt-coins are evolving which are asic resistant and will keep mining decentralised which will inevitably replace litecoin. I wonder if these ideas of the death of litecoin are premature though. Litecoin has a kind of pedigree, for example it is accepted in more places than any alt-coin and second only to bitcoin.
Having said all that it doesn’t look like the time is ripe for another of those huge green candles on the ratio chart. Those last two candles occurred when bitcoin was rampaging on new all time high bubble peaks. This time bitcoin is still barely getting started and still quite a way below all time highs. If you do switch some bitcoin to litecoin looks quite probably you may have to endure further falls before any sudden spikes upwards.
Have been planning to write about some of the new coins which aim to provide anonymity in transactions, (in my opinion the biggest thing bitcoin lacks). Darkcoin, while not truly anonymous is consolidating quite well despite a few setbacks recently with their latest updates.
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. https://bitcointalk.org/index.php?topic=637704.0