Time for another look at bitcoin

Last bitcoin post I was lamenting the failure of cup n handle formation which I’d been watching. But whats been happening since then? Lets take a look ..

I’m using log price scale again for this chart with timescale on this chart going back a couple of years and 1 week candles.

Price has dropped recently but has failed to convincingly fall back into the bear trend which was below the red line. It looks more like a retest of a line which was previously resistance now support. And started a bit of a rebound.

I’ve added in a potential bullish channel to watch, will these lower or middle trendlines of that channel provide expected resistance or support ? I guess time will tell. The perma bull part of me wants to see a rising channel though so I’m hoping it lasts.

The whole block size shit fight has not yet gone away and uncertainty remains over what will happen eventually to reach solution. Bitcoin may even switch to a new fork. I confess to not understanding enough about this to have an informed opinion. (In fact I’m a bit ignorant about what the fork really means for a bitcoin user… Will I have to download a new wallet to convert my old bitoin to new XT bitcoin? Is this a one way thing that once you have bitcoin XT theres no going back to bitcoin core? Or can you have both like double bitcoins? What does it mean? Double rainbow!! )

But anyway I instinctively don’t like the thought of block size increases being done automatically based on time intervals which I think is the essence of the XT fork and seems far too ad hoc to me. Equally bitcoin core seems hell bent on keeping 1M blocks come what may and resisting increasing block size, which to be honest is ludicrous. I really don’t like the thought of where this leads to which is an eco-system where fees have to rise higher and higher for miners to accept your transaction in the block which is too darn small. I have heard many miners are supporting something, I forget the name {will edit post later if I find it} where miners decide how big blocks should be, which based on limited understanding on my part sounds like sensible approach.

Anyway more research is required on my part to understand this whole thing and decide which mast to nail my flag to. But for now I’m cautiously optimistic that despite the block size shit fight it will eventually resolve in a good sensible way, and price will fail to capitulate to new even lower post Gox bubble lows. Then let the new rallying begin.

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