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How To Make Money Shorting Bitcoin From A Bitfinex Bankruptcy

BITSTAMP:BTCUSD   Bitcoin / Dollar
743 7 11
This plan will be put into action at the first instance of bankruptcy proceedings against Bitfinex.

I will use the 10W MA as my stop loss level and look to open a short position on the next move higher which I suspect will coincide with Bitfinex relaunching their website and or any functionality involving the withdraws of alt coins and or USD.

I believe there has been a significant level of damage done to it's reputation and trust that will ultimately force it to cease operation and enter administration. Looking back at price action when Mt.Gox collapsed we can see for several months the price of Bitcoin was under pressure before recovering in May then continuing it's decline.

I suspect we will see similar price action again. Another interesting aspect of this situation coincides with a chart I posted before the Bitfinex hack showing the negative historical significance August seemed to have on the price of Bitcoin and I still believe this to be true which is posted below.

I suspect this will be played out over the coming weeks and months I will therefore open a quarterly contract at Okcoin with the aim to hold the position over the coming months.

Good Luck

Related Ideas

BTCMarket PRO
4 months ago
Seen it before
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Haus_
4 months ago
Interesting idea, however August hasn't always been a bad month for Bitcoin. Looking over the historical charts August 2010, 2011, 2012 and 2013 were all net up or neutral months. Ref: https://imgur.com/zhuimN0. On top of that nine of the twelve months following the previous inflation halving (28 Nov, 2012) saw the price increase, culminating in the 2013 bubble to $1200. I suspect people have become used to bitcoin being in a bear market even though that is no longer the case now.
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Haus_ Haus_
4 months ago
A correction to the above, August 2011 was actually down following the rally to $25.
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BTCMarket PRO Haus_
4 months ago
have a look at btcchina
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Haus_ BTCMarket
4 months ago
If anything it seems to follow the general trend, but it seems like a fallacy to bet on the month being down based on such a small sample set. Using BTCChina's data it shows that only five days into the month the price has already retraced 65% from the lows.
snapshot
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BTCMarket PRO Haus_
4 months ago
Your arrows are pointing in a direction longer than the month in question which is August.

Bitcoin has only had 1 time in it's history that the "End" of August "Closed" "Higher" than it's "Open" with the exception of one month I'll call neutral as the range is very narrow.

You seem to be confused about open and closes. "In a single bar you have an open and close" so if the month of August closed lower than it's open it was down month it's that simple.

You can see this here:
snapshot
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Haus_ BTCMarket
4 months ago
Thank you for the lesson on reading candles, but I'm well aware of they work. :D Me personally, I try not to short the ends of ABC corrections in a bull market. It is bitcoin though so you never know! Good luck with your bet.
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