Rashad
Long

BTC to 500 before end of 2014

BITSTAMP:BTCUSD   Bitcoin / Dollar
416 4 4
Squeeze momentum indicator shows that momentum for Bitcoin is finally not being squeezed anymore. The CCI has been trending up since August

The reason I believe Bitcoin price rally happened this week is due to a lack of volume due to institutional miners holding out for higher prices. Since Bitcoin has been falling in value for a while now, and the mining difficulty going up, Bitcoin mining has become very unprofitable for the retail investor. As a result, the mining difficulty has not gone up significantly for a while due to a fall in mining investments. Recently there was a 9% increase in the mining difficulty. If you consider that the last low was $317, 9% would represent a price of $345.53. That is uncannily close to the current price of $348.87. If BTC crosses it 25 Day MA, I believe we will see it move up to its 50 Day MA (around $368), then another wave up to $400. From there, a recovery to $500 is not an unreasonable price target. That would take us back to where support was in August. Think about it fundamentally. Bitcoin's come from mining. Mining needs to be profitable. Profitable Bitcoin mining drives more investments. Bitcoin mining profitability and squeeze's in momentum with a squeeze in hashing power on the network can be attributed to one of the reasons why this weeks 9% increase in difficulty caused 9%+ price rally.

Constructive Criticism to my posts are always welcome. I look forward to your input and ideas.

Related Ideas

Rashad
BTC to 400 soon
Rashad about BTCUSD 2 years ago
Patladj.
2 years ago
I don't think mining bitcoin has anything to do with the falling price. It's just that the coin is still overpriced and seeks fair value. finding it will first stretch to the bottom and then recover to around $70 - 100, which is the fair value. Momentum not squeezing on some timeframe means only temporary bullish. When you look on other - bigger timeframes, you'll see anything points southwards, and nothing has rly changed. Try it.
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ChartArt
2 years ago
-- "Fire Destroys Thai Bitcoin Mining Facility"

"A bitcoin mining facility in Thailand has been destroyed in a massive fire this week and foul play has not been ruled out, according to a local source."
http://www.coindesk.com/gallery-fire-destroys-thai-bitcoin-mining-facility/

This event certainly helped if these miners previously instant sold their BTC.
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Maddie ChartArt
2 years ago
This news isn't real men :(
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ChartArt
2 years ago
The chart which you drew shows bullish signs. The red CCI trendline which you added signals an uptrend now. And the Squeeze Momentum is getting less bearish, while the 25 day simple moving average is soon starting to give support.

snapshot
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