ferGOD

Bitcoin - Bakkt FLOPS & Hash Rate Crash - Part 4

Long
ferGOD Updated   
BITMEX:XBT   Bitcoin / U.S. Dollar Index
Bitcoin Breaks Down

After weeks of indecision and what appeared to be a strong argument for $10K $BTC , bear pressure finally broke through the lines and took Bitcoin down hard. The carnage on the charts wasn’t limited to $BTC , however, as all the majors ( $ETH , $XRP, $EOS, $XLM) took hits in the double-digits. The surprising and impossible to predict turn of events led to the crypto market looking more like a smoldering crater than an asset class with a bright future. Currently, $BTC is trading hands a shade over $8.1k while a select few majors, like $XRP and $ETH , appear poised to recover some of their losses.

Bitcoin shed nearly $2,000 in value before the market had time to blink, leading market observers to seek answers.A flash crash of this magnitude hasn’t been seen in months. Given the relative stability of crypto’s leading digital asset across recent weeks, suspecting the involvement of concomitant factors is certainly warranted. While this week’s losses appear insufferable, they’re only the third-worst of the year. What we’re implying here is that on two other occasions in 2019, Bitcoin has taken a massive beating and recovered .

Let’s take a look at what contributed to the market wreck this week.

Bakkt FLOPS
"Buy the Rumor, Sell the Fact!"

There are a million ways to spin the Bakkt debut, but here is the reality. Bakkt flopped. Perhaps belly-flopped is more accurate here. What was a hotly anticipated date – Bakkt’s physically settled BTC futures debut – turned into a dud. It was kind of like finally lighting your favorite firework, watching the flame move down the fuse with indescribable excitement, then feeling speechless disappointment when the firework fails to go off. In its first 24-hours, Bakkt settled a mere 78 BTC futures which, ironically, settled October 2019 futures at below $10K. The immediate market takeaway from the hollow debut wasn’t too difficult to guess – big financial institutions aren’t all that interest in BTC .

Or are they?

We’re more inclined to think that the situation is a more simple than it seems. Institutions who are ready in the here and now to buy BTC can already do so using OTC exchanges. At this early stage in the crypto game, an institution willing to buy now is already adventurous and probably doesn’t need the Bakkt onramp. We’re not saying Bakkt is pointless, though. What the flop debut reveals is that even though mainstream institutions aren’t breaking down Bakkt’s door yet, they might do so down the line when BTC adoption and consciousness finds real legs.

As a piece of infrastructure, Bakkt is incredibly important for crypto. The only thing is, it might be slightly ahead of its time.

BTC Hash Rate Crash

This is a quickly developing story that is still sans deep details, but here’s what we know!

On September 23, the Bitcoin network hash rate plummeted 40% in what was one of the largest intraday hash rate drops in network history. The reasons behind the strange crash are still shrouded in mystery. A high hash rate means miner competition to validate blocks is healthy, which in turn makes the network more competitive and, thus, secure. An increasing hash rate is viewed as bullish , while the opposite is viewed as, well, bearish . Some have speculated that the hash rate crash was caused by a firmware upgrade to account for the network’s incoming difficulty increase. Jeff Brandt, a user posting to CoinTelegraph’s comments section, described his view of the situation:

“The explanation is simple. The next diff increase in 2 days will push previous gen S9’s (roughly 50% of the network) below profitability.

Last week an unrestricted firmware for S9’s was posted and every large farm operator is working at a feverish pace to get approximately 3 million machines updated. The new firmware has optimizations that squeeze the very last bit of efficiency out of the S9 lowering the watts/thash-sec from 96W to ~80W. Some machines can perform with no degradation to speed, while older machines must drop performance by ~30% to achieve the same results.”

The Takeaway

Three significant factors colluded to cloud the cryptocurrency market with a gloomy outlook.

VanEck SolidX’s ETF withdrawal, a sudden hash rate crash, and Bakkt’s weak debut happened in nearly perfect unison, giving a sideways BTC the motives needed to break down.

At this point, we’re watching and waiting for the carnage to slow.

Technical analysis

Another possibility is that we witnessed the conclusion of wave C in an ABCDE sequence. Meaning that 2 other ABC's will follow (and frustrate a lot of people)

I wouldn't be surprised to see this happening in a falling wedge or something similar.

Well keep you updated as this timely issue evolves.

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I am not Bearish long term. I am a Bull of Bulls.

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God bless you!

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#altcoins #bitcointrading @btc

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Comment:
Plan A - Plan B
I am always ready.
Comment:
“Price follows hashrate and hashrate chart continues its 9 yr bull market.”
Trade active:
Alright, we came close towards that first resistance in what appears to be an ABC zigzag (Wave 4). Was this it? Or is this part of a complex correction? Yes!

I think that we will recover during the coming days.

Pattern looks done
Hourly bullish divergence

Targets? Short-term

> $7500
> $7150

This was a complex correction in the bearish trend. It's done now.

Buy the Dip!

See you at range! Take Profit in

$7500 - $7100

https://twitter.com/@f3rG0D

#CRYPTO #BITCOIN #BTC

We go TOGETHER! Together we are STRONGER!

Good luck!

God bless!
Comment:
Trade active:
Trade active:
God bless your
Comment:
Trade active:

Remember! Keep! This is on the table. Let's Play!
Comment:
Another possibility is that we witnessed the conclusion of wave C in an ABCDE sequence. Meaning that 2 other ABC's will follow (and frustrate a lot of people)

I wouldn't be surprised to see this happening in a falling wedge or something similar.
Trade active:

Remember if
This is on the table.
Working well!
Trade active
Trade active:

The previous supports that held over time failed. It's like that they weren't there in the first place. I expect that the lower channel boundary LTA workin. $6k here we come?

In other wordsit is was time for a bounce (PULLBACK) that will be followed by another low later...

If you loved bitcoin at $8600, I'm sure that you will love it here too!

Trading is fun right?

$7400 - 7200 range in working

However, the RSI tells me that it isn't time for a significant recovery. I expect that we will test lower levels over time. (6k is coming)


#CRYPTO #BITCOIN $BTC #TRADING
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