Crypto-Carnage - Bitcoin Is Down $500 From Overnight Highs

Tyler Durden's picture

Cryptocurrencies are crashing this morning...

After a 70% surge following the fork to a new record high at $4400, Bitcoin is getting battered this morning...

 

Dow $500 from overnight highs...

 

As a reminder, Goldman Sachs' chief technician Sheba Jafari increased her forecast for Bitcoin to over $4800... but warned that the virtual currency could then drop to $2221...

Now that the market is getting closer to reaching this level, it’s going to be important to take note of any/all signs of trend exhaustion.

 

There is of note a 2.618 extension which runs as far as $4,827.

 

 

Once a full 5-wave sequence is in place, the market should in theory enter a corrective phase.

 

This can last at least one third of the time it took to complete the preceding advance and retrace at least 38.2% of the entire move.

 

From current levels, that would measure out to ~2,221.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Truther's picture

Someone is not happy.

you_are_cleared_hot's picture

What was that bet McAfee made again??? something tells me he is going to say he was "only kidding"

BLOTTO's picture

What happens to the people who borrowed bitcoins at $200?

BLOTTO's picture

How does one by a Subway sandwich using bitcoins knowing in 4 weeks you may have paid $80 for it...or maybe even $0.25?

CH1's picture

BTC $3800. We're in tears, I tell ya!

mtl4's picture

Nice to see a good use for all that bailout money the FED and other CB's pumped into the markets.

BaBaBouy's picture

They heard about Buttcoinz and look what happens ...

Creepy_Azz_Crackaah's picture

Please. This is what stable "currencies" do.

They simply have too many valuable electronic 0s and not enough valuable 1s. Delete some valuable 0s and the valuable 1s will pull the price back up.

Manthong's picture

 

.. at least Btc it is not a volatile speculative bet.

..it is hard asset electrons....

 

..and I would not sell a single ASE or AGE for a dozen of them

 

OpenThePodBayDoorHAL's picture

I guess that guy with the BTC futures account and the "unlimited bankroll" decided to have some fun.

"Oh, oh but it's different from gold!"

LOL

Raffie's picture

I bought all mine when BTC was $900..

This drop has me all bothered, I might lose 15min of sleep over it.

Yukon Cornholius's picture

I bought mine in and around $400 so I'm like 8D. Original investment is paid off so I'm riding the wave!

Raffie's picture

$400.... very nice..

I had an account setup and ready to buy BTC when it was $235, BUT got sidetracked and busy. I had $5k was going to invest.... Oh well....

 

Yukon Cornholius's picture

Sounds like you got into ltc pretty early. That's the next one imo.

38BWD22's picture

 

 

I just bought *today* a small amount at a BTC ATM here in London, that machine (Old Street underground station) required no ID, so OK...  Europe seems more relaxed about BTC than the USA.

Hey, it might go way down too (or up).  But, the future looks bright, at least until something better will come come along (and something better surely will).

Raffie's picture

I got my cryptos and ICO's. Have not bought any more cryptos, but soon will cash out some of my gold (since that dog does not hunt. Likes to sleep A LOT) and buy more cryptos. Also will need to have ETH ready for when KIN ICO is open to pre token sales.

Where I live I'm looking at locations for crypto ATM's I want to buy and place. ATM's are so cool and really taking shape.

How much was your fee at the machine you used?

Percent wise.

38BWD22's picture

 

 

Fee was 10%, which sounds high, but beats the ones at home (at least the machines I have used recently).

Actually, before too long I will take some of my BTC gains off the table and buy Au.  Both BTC and gold are good, but I would rather have some moar Au to realize the BTC gains.

(I did buy a Sovereign today, an 1886 "Young Victoria", hard to find, for me anyway, in the US).

 

EDIT: I asked the young gal there if the machine ever gets used.  She said yes, more and more...

Raffie's picture

Reading around was hearing the common fee is %6-%7 , but %10???? wow....

 

Bay of Pigs's picture

You have to admit these assclowns using TA and EW to predict prices in BTC is laughable.

Full Retard is what it is.

Raffie's picture

Well, if they can more power to them.

The free markets I was told is a bit of a nightmare to even attempt to predict where they will go.

That one trader figured out somewhat how to predict ETH and made $200mil.. so there is that.

Bay of Pigs's picture

There are no free markets. That's the point.

Placerville's picture

Perfect retracement down to support on the 4 hr. chart.

Golden Phoenix's picture

Maybe you have it backwards. It's a lot easier to spend from a wallet that keeps filling itself back up again.

PrezTrump's picture

thank god for mining!  we are pretty much OPEC here running this ponzi to the moon

booboo's picture

Mass redemption will be fun to watch

Yukon Cornholius's picture

Which will happen when BTC hits....? $5000? $6888? $10k? When does this mass redemption begin?

Manthong's picture

 

kind of rough to do that ....

When there is no bid...

 

..and if you believe the bankers/.gov are not intervening in this  and trading increasing amounts of their zero cost fiat for your earnings…. I have a very sturdy bridge in Brooklyn to sell you.

 

PrezTrump's picture

Yea keep thinking that gold turd.

Manthong's picture

 

Turd…. Driving through cow country…. hmmm… just smell that money

Well at least you have the Internet free market, trustless, highly encoded, non-NSA interest.. Blythe Masters, fungible   medium of electron exchange and store of value.

Me… just stuck with 6,000 years of history…

..and the one thing that ultimately determines bond values….

But do not take my word for it …. Ask Greenspan, Bernanke, Summers and Yellen………

 

..they do not keep that alleged 8,000 tons on the ledger for no reason.…

 

Raffie's picture

Where is this big GS spike we hear about every month?

Multiple decades of sleeping prices, yet gold did spike to $1900 then was quickly beaten down back into submission.

Enjoy the WAITING GAME.

https://www.youtube.com/watch?v=rLJQT3jbd5I

Manthong's picture

hmm...

I wonder if the guy at the Venezuelan Citgo down the street…

..understands  that any of the Morgans in any of the sleeves or bags are each worth at least a half tank of gasoline?

I would wager they would get me a very long way along in Venezuela right now.  

JRev's picture

Precisely. While much of the money entering the cryptosphere of late is speculative, it's clear bitcoin is also receiving a "safe haven" bid of sorts and is increasingly seen as an alternative to national fiat.

I also have little doubt that Chinese officialdom is involved with bitcoin price action in some manner and are effectively bidding it up to wage monetary war by other means. Can't prove that. But if it's true, a bet against BTC becomes a bet against the PBOC + the largest bitcoin mining juggernaut on the planet - might be an unwise wager.

38BWD22's picture

 

 

Apparently there is a lot of Japanese money now flowing into Bitcoin.

Has Mrs. Watanabe changed her mind about investments?

Manthong's picture

 

JHC…

..they have enough demographic population replacement problems over there…..

..what the F are they going to do when all Mrs. Watanbe’s off themselves after the BTC collapse?

Bay of Pigs's picture

Who knows but the BOJ certainly has.

jin187's picture

Probably the same way someone in Venezuela bought a sandwich for $100, and realized 4 weeks later they only paid $0.01.

It's essentially just pretend digital gold, and brings with it the same risks and rewards of owning gold. You don't see people buying gold coins and using them to buy Subway. Not sure why anyone would do it with BitCoin either, unless they don't have access to a more currency to use.

Raffie's picture

Litecoin will be the silver to the Bitcoin gold.

LTC will be for everyday use and each coin can be broken down in to 100mil units (iirc)

Litecoin is gaining speed, Overstock accepts litecoin now.

Give it time, watch companies accept cryptos all over America

PrezTrump's picture

Its much more likely ETH becomes second if not first.  Wait for metropolis update.

JRev's picture

Ethereum is a company running a coin/protocol. BTC is an open-source, decentralized protocol. These are two very different models with two very different use-cases. 

ETH may become quite valuable in the future but its use-case is running full applications (a "Turing-complete" language) on a blockchain, NOT as a currency. If ETH succeeds in its designated purpose, the Foundation has already stated that they will issue as many tokens as necessary to keep enough "fuel" for smart contracts/dectralized applications/autonomous organizations on the network. 

In other words, Ethereum's success as a software platform may ultimately spell the end of its use as a currency/speculative asset. 

With BTC, the supply is predictable and fixed. I have no idea how much ETH will be in circulation ten years from now; what happens when "smart contract" businesses boom and the Foundation increases the PoS inflation rate to cover the burned ETH? What happens when some of these massive "decentralized organizations" go belly-up and stop burning massive amounts of ETH? These are big economic questions that are yet to be answered and have to be divorced from the technical promise.

Because on an economic level, ETH is essentially a Central Bank-esque model, with artificially induced money supply and (eventually, post-PoS) interest rates. 

PrezTrump's picture

great points. i dont think we will have to worry about unlimited tokens.  it will make economic sense, they want price to rise in the end.

Raffie's picture

ETH is unlimited because the tokens can be consumed in the programs and/or modified to be used for other things.

BadLibertarian's picture

The Ethereum foundation is a non-profit which funds Ethereum development. Blockstream is a for profit company which funds much if not most of Bitcoin development.

Ether is not 'burned' - gas is. Miner's receive the Eth used to purchase gas as a transaction fee in the blocks they process and then they can spend that back into the economy in any way they like. In the future, stakers will be able to do this instead of Miners. Ether may continued to be 'generated' to provide block rewards to stakers - or it might not. The development team is open to monitoring how things develop before committing to a decision, however there is an expected upper bound on this inflation rate, so I don't see it as any cause for concern - especially not at this point in the adoption curve. 

JRev's picture

Litecoin is a bitcoin testnet, nothing more.

Both will have implemented SegWit by the end of this year - sure, Lightning (if it comes to fruition at all) will show up on LTC first, but Core will eventually implement it giving LTC no competitive advantage whatsoever. This is open-source software - take the best, leave the rest. 

Placerville's picture

That's why I'm not selling the BCH split. Same limited amount as BTC.

SybilDefense's picture

Check out gold money.com.  it is a way to store wealth and you get a card to debit against your stack, which you can transfer to any of twelve vaults world wide.  So there's that

JRev's picture

Runs on VISA, vaults with COMEX-approved BRINKS vaults. GoldMoney is a good way to make gold more liquid, but it's hardly outside the traditional banking system. (Not sure why anyone would spend gold given Gresham's Law but I digress).

I've also heard from some people who had problems redeeming physical gold in smaller amounts which doesn't bode well for their reserves - definitely some fractionalization going on there.

Ghost of PartysOver's picture

Why is one crypto worth $4,000 and another only worth $0.86?   That is a weeeeee bit of a difference.  

I still can't tell if this is one big con or the the way of the future.

tmosley's picture

Why is do gold and iron have different values? They're both metals!