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Get ready for the bitcoin recovery. Technicians point to rebound

While it’s been a tough year already for the top two digital currencies, things may soon be looking up.

While it’s been a tough year already for the top two digital currencies, things may soon be looking up.

Conditions are forming for a rebound in Bitcoin and Ether, which have tanked this year amid mounting concern that they’re in the midst of a deflating bubble, according to Rob Sluymer, a technical strategist at Fundstrat Global Advisors.

“It is premature to conclude a major low has developed for BTC, ETH and our FS CryptoFX indices, but we do see a technical case to support an oversold trading rally from current levels,” he wrote in a report Friday.

Bitcoin investors should see the reversal start at the 200-day moving average, which was at $7,780 when the report was written, Sluymer said. It’s now at $6,224, according to Bloomberg data.

© 2018 Bloomberg

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Looks like the technicians don’t have clue about bubbles bursting, and prefer to cling to averages, because there’s no bursting bubble chart pattern.

I pointed out long time ago that Bitcoin is not a method of payment anymore but a speculative investment. Apart from drugs and virus blackmails very few payments are made in Bitcoin. Would you accept payment in Bitcoin if the value of the payment could drop 20% next week? Or would you be prepared to spend your bitcoin on groceries if you expect it to recover and next week it might be worth 20% more?

Ok Rule9, let’s review your comment in a decade or two. Haters will hate yo.

Rule9 is not bashing the idea of crypto currencies.. its just that you can’t rely on “technicals” when the context and current state of cryptos is that they are effectively worthless fundamentally. When/if they become real currencies, technicals will be useful.

With the current transaction fees and time to confirm transactions Bitcoin doesnt seem to have much use as a basic currency. The new technologies like Lightning say they can fix this. If true i can believe that it could have a future.

The inherent belief that supporters of Bitcoin have that that would automatically mean huge rises in its price i’m not sure i understand. It’s becoming easier and easier to create better and better crypto’s. So let’s say the eventual size of the crypto market stabilized at about 100 times where it is today. By that time there could easily be about 1000 times as many viable crypto’s as today. So as soon as any crypto gets expensive you have many alternatives. Or just create a new one?

To quote a recent comment of mine, until nation states have control, value remains stable and you can redeem a “coin” from a major bank they are just highly volatile, speculation-infused crypto-junk bonds. The FOMO “investors” have already started backing off, the glory days are over. Blockchain technology has much promise but “crypto currencies” are currently not currencies and are not assets. Smoke and mirrors :-p

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