Quick TA update (at $0.481):
- 6H candle color/volume: not much volume during this week, conclusion: none/(historically: bearish)
- Bid/ask strengh at market (Bitstamp): slippage to sell 5k: $0.040, slippage to buy: $0.043, conclusion: both sides have built up since last time
- Trendline comparison: we are now at -0.355 log units. The trendline is at $1.090 and rising $0.008 per day, conclusion: rock bottom (note: it is not necessary that 'rock bottom' will change until the parabolic uptrend starts, because the trendline is itself rising)
- Sentiment: n/a
- Prognosis: shortest term unsecure, mid-term not sure if reversal seems confirmed, long-term buy zone
The volume in Bitstamp is absolutely anemic. I remember it took a week for me to purchase my initial lot of coins in 2011. It would now similarly take a week to acquire a corresponding position. Either there is nobody in the world in the process of doing it (!) or they are using other methods. Granted, buying a large number of bitcoins takes more cash now than in 2011, and therefore the buyers may be different class of people mainly...
The "price vs. trendline" has dipped lower than at any point in the slump of mid-2013. Before the beginning of the (first) 2013 rally, it was -0.583. If we were that low now, the price would be $0.285. The historically correct way to use the trendline has been to buy at the first time the price crosses -0.3 from above. This gave excellent results in 10-2011 and 7-2013, and I believe the $0.46 from 4-2014 will turn out to be a prime low-risk entry point.
In another forum, I read about the urge to "boredom sell" if "nothing" is happening for "a long time". It is sometimes hard to comprehend how quickly some of the forum frequents would like things to happen. Bitcoin has sustainably gained value 1,000% per year, which is 0.7% per day on average. The yearly return is 1,000 times more than you get from a bank, and on average 100 times better than stock market. (There is no comparison in "10 times better", because no investment can generate such returns, and still it would be only 1/10 as good as Bitcoin has historically been).
Think in bitcoins! Think in percentages! I have tried to keep my share as 1/1000 of the world's bitcoins, and only slowly going down when it gains more appreciation. Don't sell out of boredom, like I did last September, wasting 2000+ bitcoins and gaining.. nothing really. Only sell if you gain something, and even then only if the price is right.
- 6H candle color/volume: not much volume during this week, conclusion: none/(historically: bearish)
- Bid/ask strengh at market (Bitstamp): slippage to sell 5k: $0.040, slippage to buy: $0.043, conclusion: both sides have built up since last time
- Trendline comparison: we are now at -0.355 log units. The trendline is at $1.090 and rising $0.008 per day, conclusion: rock bottom (note: it is not necessary that 'rock bottom' will change until the parabolic uptrend starts, because the trendline is itself rising)
- Sentiment: n/a
- Prognosis: shortest term unsecure, mid-term not sure if reversal seems confirmed, long-term buy zone
The volume in Bitstamp is absolutely anemic. I remember it took a week for me to purchase my initial lot of coins in 2011. It would now similarly take a week to acquire a corresponding position. Either there is nobody in the world in the process of doing it (!) or they are using other methods. Granted, buying a large number of bitcoins takes more cash now than in 2011, and therefore the buyers may be different class of people mainly...
The "price vs. trendline" has dipped lower than at any point in the slump of mid-2013. Before the beginning of the (first) 2013 rally, it was -0.583. If we were that low now, the price would be $0.285. The historically correct way to use the trendline has been to buy at the first time the price crosses -0.3 from above. This gave excellent results in 10-2011 and 7-2013, and I believe the $0.46 from 4-2014 will turn out to be a prime low-risk entry point.
In another forum, I read about the urge to "boredom sell" if "nothing" is happening for "a long time". It is sometimes hard to comprehend how quickly some of the forum frequents would like things to happen. Bitcoin has sustainably gained value 1,000% per year, which is 0.7% per day on average. The yearly return is 1,000 times more than you get from a bank, and on average 100 times better than stock market. (There is no comparison in "10 times better", because no investment can generate such returns, and still it would be only 1/10 as good as Bitcoin has historically been).
Think in bitcoins! Think in percentages! I have tried to keep my share as 1/1000 of the world's bitcoins, and only slowly going down when it gains more appreciation. Don't sell out of boredom, like I did last September, wasting 2000+ bitcoins and gaining.. nothing really. Only sell if you gain something, and even then only if the price is right.