Litecoin shows signs of a possible "bull trap" developing: Now, compare the above to the one (classical, posted dozens of times every month): Once it pops, it can't stop! :lol: ...If we get past this second hump, BTC and LTC may be headed way down south. Antarctica? The charts for both look eerily similar to the asset bubble scenario. And because of the bullish madness during the first 2 weeks of this month, we can see that during week 3 it was rather falling back with lots of sideways moves. Fear phase ahead?
I just put my btc back into fiat after reading your post Treasure Hunter. For some reason, it put a big sinking feeling in the pit of my stomach. A guys got to remember to play safe, and only play with what you can afford to lose.
Meanwhile, BTCChina is falling. Looked like a "head and shoulders" figure on the chart, which is bearish in forex. Not sure how many forex rules REALLY apply to cryptos. If I am right, a HEAVY CRASH is going to occur during the coming days/1-2 weeks. After that, we could purchase for lower price. Unless big buyers come in and/or if others bite on (while the prices are still high), the BTC and LTC will crash.
My reasons for a possible crash: on the charts the price variation is asset bubble-like and, if forex rules also apply - there are plenty of other signs. Meanwhile, the volumes traded appear to be smaller. Sales are multiplying, but there are less and smaller buys.
One thing I've found with chart analysis on bitcoin & other volatile cryptos is that it's very easy to get the scale wrong. What you may think is the bear trap, may actually be the bull trap.
Well...it could, though I'm hoping it will go down a good bit. Analysis only gets you so far imo. There are just too many highly random factors that influence the price. I'd be curious if you saw any indicators on the alt-coins that had big surges lately like namecoin. I mean, how do you predict that was going to happen? I hear a lot of things have jumped in price but I haven't had a chance to assess what is going on. I figure it's just new blood flowing in?
One can't simply predict what's going to happen. What's bothering is that while I was staring at those "smaller" coins, thinking about trying them out, they surged! Still couldn't upload my accounts with funds due to those payment systems. I hope it gets sorted out soon and will try it out...
We agree then. Do you have the Namecoin client installed or willing to install it? If you're willing to do a favor for me, I can sling a couple NMC your way to say thanks. Maybe it will let you practice trading before the heavy ammo arrives? Please PM if interested.
I have the LTC, BTC and XPM installed. Tried Terracoin, but just didn't work. That DOS application was just so misleading and low-tech. My problem is with the payment upload... I hope this will get sorted out by next week. I am waiting for some developments :/ Anyway: BTC and LTC are up. They have a lot of power to surge. But who knows when a sell-off could get triggered! Downloaded the fixed version Q.3.72 of the Namecoin wallet... https://github.com/namecoinq/namecoinq/tree/vQ.3.72 Can't get it to work. No "normal" application Honestly, I'd try some other coin...
It's not popping, but increasing. The "asset bubble" is not popping... yet! The bubble is inflating: You might say, it's tempting to get in, but riskier as time goes by! On Wednesday we had a massive drop from 823 $ to 375 $ on BTC-e for BTC. Can't imagine what the heck is pushing it so high now... :/
I wouldn't be touching Namecoin at this time. If you just want to speculate, that's fine. But if you have longer timeframes in mind, you're going to want crypto-currencies that are actually suitable for trade: http://www.coindesk.com/namecoin-flaw-patch-needed/
Thanks man. I had assumed they'd fixed it by now but it appears not yet. I've had them tucked away for a while so I'll wait. Just needed them sent to an exchange without me having to install & load the blockchain. Added...How can it jump in price like that under such circumstances? lol. This be crazy.
Food for thought indeed and thanks for that very interesting post... however, in the case of the btc chart you show it would appear as if the 'second hump' is going at least as high as the first one, maybe even higher!? And this differs from your classical graph of a bull trap where the second hump is somewhat lower than the first one... The current view of the price graph supports my point. note the height of the second bump
Just be careful looking at this chart with the moving averages switched on, If you look at the high of $900.97 & the current high of $813.99 I'd say this chart still fits the 'Phases of an Asset Bubble' blueprint to a tee. I'll just add, even if this is a 'double top'; That usually leads into a big drop also: http://stockcharts.com/school/doku....t_analysis:chart_patterns:double_top_reversal Hence why it is often called a double top reversal.
