Bitcoin appears to be making a double bottom here which is close to a support/flip zone of the 7600 zone. A double bottom shows us that a trend may be over (in this case a downtrend) as we fail to make new lower lows which confirm the lower high. It tells us the trend may be exhausting.
I would await the break and close over the 8300 zone before considering going long.
The 9200 zone would be our first target.
China is now coming close to releasing their state controlled cryptocurrency. The People's Bank of China is aiming for a November 11th release as it coincides with China's largest shopping holiday, Singles Day.
If you follow my work, I have outlined how a digital currency is coming. This way all money can be taxed and tracked on the Blockchain.
Craigslist/ebay/amazon sales will be taxed, restaurant tips will be taxed, private jobs/tutuoring you do will be taxed. Small business income will also join the employee tax bracket. With a digital currency, small business tax loopholes which western governments have been closing, can be enforced much easier.
Also, a digital currency will force us to keep money in the banks when they go to negative interest rates, paying the banks a monthly interest for doing so.
If we go down the MMT or Universal Income path, we need more taxes. The Socialist economists know that giving people more money with production not increasing will lead to inflation. You have people with more money competing for the same number of goods. Solution? The government uses taxes to remove (or kill) money supply from the system. Essentially acting like the Central Bank.
Government is getting bigger, which means more taxes to pay for it. Throughout history, authoritariansim always comes in the form of liberalism. It is always the young who bring this upon us as they are largely ignorant on money and the real world. Most socialist/liberal parties target post secondary schools because students have a lot of student loans, do not have a high paying job so do not pay much taxes, have no family and own no home. It is very easy to convince these people that they are where they are in life currently due to their gender, skin colour, religion etc.
I just bring this up because you can see the big government movement coming. Digital currency is a key core aspect of this. When the next financial crisis occurs, I am sure there will be a credit freeze. Everything will be frozen, and people will not be able to access their money.
Government (and banks) solution will be a going digital and eliminating cash. Government will say this has to happen because if they bail out banks, people will storm them to remove their money. Essentially going digital to prevent bank runs.
Do you think trying to regulate Crypto out of existence in more "developed" authoritarian countries would potentially be a good thing for the overall crypto market over the longterm as would kind of prove to those in the know that Crypto is a valid solution to the fake Keynesian economy?
Uncharted-FX
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@xrphodler99, All I know is that when cryptos are regulated, it will be positive because that is when large funds and institutions will jump in. Right now they cannot tell their fund participants they are investing in something with a broker that might not pay them and there is no depositor insurance. In terms of validation, it really is about who brings digital money first. Will it be the state/government which I think it will be, or will it be a corporation such as Facebook.