This time I want to talk with you about technical analisis of Bitcoin and altcoins. On social media they pass by on a regular basis, people who use numerous lines in all different colours to predict where the price of Bitcoin is going. Ofcourse we cannot deny natural laws or the existance of fibonacci levels in our universe, but believe me when I say crypto is something different and therefore does not per say stick to these rules.
The thing is this, since last year april, when the Bank Of Japan declared Bitcoin legal tender: https://www.coindesk.com/japan-bitcoin-law-effect-tomorrow/ on april fool's day 2017, financial institution have access to the crypto markets. Before that moment, these debt piling entities where not allowed to use their fake numbers, that are made out of contracts which go against our human rights, to buy real bitcoins. With the new law in place there was a green light to divert those QE dollars toward the cryptosphere, and my oh my where we in for a blast. Basically since may of last year, most of all coins where moving in the same direction. In my opinion this was because 1 single entity was overflooding all cryptomarkets in the same way, to get controll over it. You see, it is impossible to manipulate the price of crypto without owning any coin, so at first we saw massive inflow of capital, this lasted untill around januari of this year. From that moment on prices in satoshi are manipulated downward to stresstest all 1500+ coins that are out there.
The reason is very simple. Banks have no clue what project is good and which one is not. They started their stresstest with double spending every POW coin possible, for the ones that are deeply involved into crypto, they might remember those weeks in may 2017 where basically every day there was a double spend on any coin. The coin I'm most related with, EFL, also got hit in that period. Over 100K EFL where double spend on Bitrex and since that moment EFL has installed a shield to protect that from happening again, but I can imagine many coins busted out on that action.
So now we are in the time where banks try to bust out the weak hands. They do it by selling the coins they bought last year. It is very easy for them to make a profit, because all coins are traded in satoshi (0.00000001 btc) and the bank balance sheet is nominated in fiat debt. Because Bitcoin has gone up over 300% since last year, the financial institutions can sell their crypto for 1/3th of the price they bought it and still not make a loss in their books.
The reason why I write down this text is because I am getting frustrated by the nonsence that traders publish, Litecoin is about to break the 50 day MA because it is going below 100 dollars! No fool, Litecoin is trading at 1.5 bitcoincents since months, only because Bitcoin is losing value in dollar terms is the price going down. If I speculate on coins, I buy them with Bitcoin and I get out of it with Bitcoin, that's why profit is only made if the satoshiprice of a coins is higher when you get out then when you got in, the dollar has nothing to do with that.
Now another thing that amazes me: Cryptonews around the world. Yesterday, all cryptorelated news included a story about an exchange that before today, nobody had ever heard of, coinrail was the name. The guardian, wired, bloomberg and numerous other media outlets (that are basically all owned by 1 single entity, that also owns these financial institutions) they all basically copy pasted the same article onto their website about how 4000 stolen bitcoins could move the price 16% lower. Well, utter bullshit if you want my opinion about it. What I believe is happening is that the Rothshields of this world are trying to use everything in their power to buy up as much crypto for the lowest price possible. Untill the next block halving I believe that many more negative actions will follow, one of the things I fear the most is Tether collapsing like a MtGox 2.0 scenario. In that case the blood is in the streets and we will halve once more from current price level. But in that same aspect, this coinrail news is somewhat of the same kind of news that tether would be. What if they can't break tether and this is the maximum possible? That would mean the bottom is being made right now and we will go higher end of summer. I really don't know at this point and I think I should just buy back atleast some bitcoins today, because I've been selling many in the last year and it's only a real profit if you can buy it back at lower price. Ok, whatever I descide to do, you will hear back from me as soon as I did it. For now I'm still happy with the NLG I bought 2 weeks ago and I'm looking forward on their new protocol release at the end of this month. Thanks to all who are reading and taking time to follow me, I hope I can invite all of you in Liberland real soon!