Is Bitcoin The Place To Be In A Volatile Market

Many investors have called Bitcoin the digital version of gold. Obviously, we know it is in a lot of ways the digital version of cash, but the comparison to gold would potentially mean that if the stock market continues to be volatile or potentially crash, then Bitcoin would be an excellent place to be invested.

However, while someday Bitcoin may genuinely be the digital version of gold, it is not yet trading as such, I’ll explain in a moment, and therefore is not likely the best place to be parking your cash while the stock markets decide which direction it wants to go.

A simple chart of with the price of Gold and the price of Bitcoin overlaid on top of each other, clearly shows the two investments have not moved side-by-side over the past year, let alone the past month when the stock has been flipping from trading lower by 1% to trading higher by the same amount every few days. Since August 8th, 2018 Bitcoin and Gold have moved in the same direction at the same time just 51% of the time. Not really movements or assets that I would call correlated. Although, since May 8th, 2019, around the time we started seeing an uptick in volatility in the stock market, the two assets have been moving in sync 58%. Still not a sign of strong correlation, but better than before and a sign that someday, Bitcoin and Gold may move much closer together.

At this time, though there are just too many unknowns with the future of Bitcoin from both a legal standpoint and an adoption standpoint for it to trade hand-in-hand with Gold.

First and foremost, Bitcoin is illegal in a handful of countries around the world. China is the largest anti-crypto country, but the list also includes Algeria, Egypt, Morocco, Bolivia, Colombia, Ecuador, Saudi Arabia, Iran, Bangladesh, Nepal, Pakistan, Cambodia, and Indonesia. Continue reading "Is Bitcoin The Place To Be In A Volatile Market"

Bitcoin Duplicates Gold Chart

“It's not gods who make pots” as investors move the market, pushing the buttons and sending the orders to the marketplace. It’s clear that they tend to behave one way or another, and that’s why patterns exist and appear from time to time as “there is no new thing under the sun.” It doesn’t matter what the instrument is it, let it be a very old commodity or a new digital asset, it is people who “worship” it, make it valuable and move the price of it.

Bitcoin caught the hype again recently after a disastrous 2018 when it was just falling all way down. I would like to share with you an interesting similarity in the chart structure of “perpetual” gold and Bitcoin aka “new gold” to find out if this rally is a part of something bigger.

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Let’s start from the monthly gold chart as it is a model for the Bitcoin chart. Continue reading "Bitcoin Duplicates Gold Chart"

Will 2019 Be A Better Year For Bitcoin?

In 2017 Bitcoin became a household name as the price went from below $1,000 per coin at the start of the year to well over $19,000 as the year came to an end. In 2018, the price of the most well-known cryptocurrency fell from its lofty heights to close the year below $4,000 per coin.

As we roll into 2019, some cryptocurrency experts are predicting Bitcoin to break the 2017 record high and fulfill its destiny of going as high as $1,000,000 per coin by 2020. Other more modest expectations have Bitcoin at around the $50,000 range by year end 2019. But the mass consensus of Bitcoin experts has the crypto ending the year in that $20,000 range.

I personally still believe that is way, way, way too high, and I’ll go even as far as saying Bitcoin will end 2019 lower than where it starts the year.

There are two reasons I believe Bitcoin will not perform well in the coming year. Continue reading "Will 2019 Be A Better Year For Bitcoin?"

Bitcoin Is At A Crossroads

Aibek Burabayev - INO.com Contributor - Metals - Bitcoin Price


Back in December I called for an unbelievable $20k target for the Bitcoin when it traded around $15.6k, and ten days later that target was hit (click on the play button to see how price emerged). It was one hell of the roller coaster ride that month as Bitcoin then lost almost half of its worth in a matter of days right ahead of Christmas falling to $11k.

Rinse and repeat! The crypto king started to grow again, and then I posted another map at the end of 2017, which implied a pullback to the $16k-$20k area before another huge drop to the $7500 area. Amazingly, both the upside and downside forecasted areas were hit accurately (click on the play button to see how price emerged).

The Bitcoin buzz is coming down with the price staying below $10k. It is like a superstar who has seen his best times already and is on the tour to the countries where he is still warmly welcomed as we are not in the $20k euphoria area now (we can call it a “cocaine” time) although you can still buy some pleasant things selling just one coin for more than $7k these days.

In this post, I would like to share with you a familiar pattern I spotted recently on the Bitcoin chart. Continue reading "Bitcoin Is At A Crossroads"

Bitcoin Fell 35% in March

Matt Thalman - INO.com Contributor - ETFs - Bitcoins Price


During March, the price of Bitcoin fell just about 35%. It started the month at $10,805 and ended just below $7,000. Bitcoin’s decline in March has been massive, but what I find even more interesting is this decline has been somewhat slow and steady. In the past when Bitcoin would crash, 30%, 40%, 50% or even more, it would happen in a matter of days or even hours.

The slow decline is an indication that the Bitcoin craze or Bitcoin Bubble is likely over. When the craze hit a fever pitch following the Thanksgiving Holiday in the US, the price more than doubled in just about 25 days. The Bitcoin rally hit a peak on December 17th, 2017 when they were trading for more than $19,205 per coin. More so than that, the last time Bitcoin traded in the low $6,000 range, was before the Thanksgiving Holiday when it is believed many families sat around the dinner table and discussed the “can’t miss opportunity in cryptocurrencies.” Those discussions helped fuel 100,000 new accounts being opened that weekend and the price of Bitcoin hitting $9,000 for the first time.

The Thanksgiving dinner table conversations helped foster the “fear of missing out” trend that we saw catapult Bitcoin both into the limelight and at breathtaking prices. That fear soon faded as Bitcoin fell hard, from $19,205 to $14,500 in just five days, following it hitting its record and still all-time high. Ever since then the cryptocurrency has been on a downward trajectory.

The declining price has lessened interest from both the general public and big investors, and even now we have seen the media outlets reducing coverage on Bitcoin and other cryptocurrencies. Even Alphabet’s Google searches (Fig.1) are down dramatically since the peak. A further look at the price of Bitcoin (Fig.2) and the Google search trend of Bitcoin may tell another story. The two charts side by side look very, very similar. Continue reading "Bitcoin Fell 35% in March"