Bitcoin, Ethereum, and cryptocurrency traders seems positive and bullish right now and indicators point to a rise in the coming days (1D MACD histogram about to go positive, several small bullish runs). However, what I see is a giant coil as large investors look to China and new regulations.
However, I look at the bitcoin chart (even though I mainly trade ether) for guidance. I see a giant coil up and many see this as a bullish coil which will fuel the next bull run. However, most investors are simply waiting to see what China does next, which could be devastating for bitcoin and the entire market.
What some don't realize now is that China now potentially controls the majority of the currency if they seize assets and mining farms. This would mean that bitcoin is now no longer a democratic voting system (it hasn't been for some time--most of the mining power is in mainland China) but now that power belongs to the Chinese government. To an investor and cultist of bitcoin, this should be a very scary thing. China can decide to do as they wish, as they will be the dominant power. The very thing that made bitcoin appealing will vanish.
I think the permabull cultists need to take a hard look at what is happening. We could be at a pause before another bull run, but I highly doubt it. The market has, in the last few weeks, shown considerable weakness trying to break out above the upper resistance line, reflecting the fear and uncertainty from big investors. The whole market has been bull-crazy for over half a year now, and this could very well be a huge inflection point.
Bulls can call it FUD all they want, but it's real. I think a lot of permabulls are going to get burned really bad soon and we may enter a crash induced bear market for the rest of the year. I welcome any sane comments or questions to which I will reply. Any rubbish will be ignored.
However, I look at the bitcoin chart (even though I mainly trade ether) for guidance. I see a giant coil up and many see this as a bullish coil which will fuel the next bull run. However, most investors are simply waiting to see what China does next, which could be devastating for bitcoin and the entire market.
What some don't realize now is that China now potentially controls the majority of the currency if they seize assets and mining farms. This would mean that bitcoin is now no longer a democratic voting system (it hasn't been for some time--most of the mining power is in mainland China) but now that power belongs to the Chinese government. To an investor and cultist of bitcoin, this should be a very scary thing. China can decide to do as they wish, as they will be the dominant power. The very thing that made bitcoin appealing will vanish.
I think the permabull cultists need to take a hard look at what is happening. We could be at a pause before another bull run, but I highly doubt it. The market has, in the last few weeks, shown considerable weakness trying to break out above the upper resistance line, reflecting the fear and uncertainty from big investors. The whole market has been bull-crazy for over half a year now, and this could very well be a huge inflection point.
Bulls can call it FUD all they want, but it's real. I think a lot of permabulls are going to get burned really bad soon and we may enter a crash induced bear market for the rest of the year. I welcome any sane comments or questions to which I will reply. Any rubbish will be ignored.
