But since we have finally found buyers at the lowest critical price (around $450), I'm getting very optimistic again. Because the buyers pushed the price so fast up again in only 24 hours, that there seem to be enough bulls left in the market that keep the price from falling so low.
There is also no big negative news so far this week. This is why I became a bull again 23 hours ago (even BEFORE we got from $442 back to $493). And IF we manage to go back up a little more the sentiment will shift a lot to bulls. And we are extremely oversold right now.
I'm also thinking it's rather early to suggest a run up to $1000 when we have all these ominous signals like those of your doomsday charts hanging over us. I'm hopeful, but I also do not believe the hype of wall st money moving in is actually anywhere close to occurring. I went over this in the chat box one day, but to sum it up: without a proper exchange (the kind institutions are used to), along with a proper settlement process, and clarification from the CFTC wall st cannot and will not take the risk. I'm just not sure the current Bitcoin money supply is capable of reaching those highs once again. The idea of the ETF might cause it, but I don't beleive that ETF will be buying Bitcoins from the open market, instead I figure (just a guess) the twins will be selling their own supply to the ETF.
Why? Because we are still inside the downtrend from falling below $1000. According to multiple indicators the price increase in May,June,July was still a downtrend. We never had any uptrend so far this year.
But overall we are still inside the mega-uptrend since $10. We have a very thin uptrend support from that underneath us. But below $420 I see hell, especially below $400. We either stay above longest long-term support around $400 or we slowly fade down to maybe $100.
Take a look at the last bubbles. I know the early 2013 was caused by Cyprus banking crisis. Speculation the one after that was actually the government shutdown worry at first. China speculation took the reigns after that.
What I am saying is that a rally based upon nothing but sentiment can't get us far. We would need more fuel in the fire to send us up really high, say 1500. It is possible to move purely on sentiment. However, without some sort of financial crash or rumor how far will people go? We will be recycling the same set of investors as before. There will be a point where many feel like they want to cash out at, suppose, 800 because the lack of any rumors.
We need something that will get a LOT into Bitcoin in a short period of time.
Buy the rumors, sell the news.
And Circle is targeting the mainstream user. Every user who will sign up will get 10 US Dollar for free in Bitcoin. Here is a video interview with the founder of Circle:
- Circle: Bitcoin's Mainstream Moment