Another southern turn in bitcoin.... If it drops to Fridays lows we could see it drop under $10000 real quick!!!!! Nice New year's surprise
Watch how quick these cryptocurrency hedgefunds change their attitude once Bitcoin goes into a free fall ...novogratz is all over it pumping it up as he's close to getting a cryptocurrency fund going, now he's holding back ....imagine what happens if his $8000 price prediction becomes $5000 or $2000, it will be quite a story once these Bitcoin bulls see bitcoin in collapse mode and how quick their predictions change going forward....
The rejection around 16K doesn't bode well for future price movements. I expected a 2Kish bounce back from there but it was stronger almost touching again the BB line on the daily. I think we are going under 10K....
There is really no good shorting trade on these stuff. Even if you believe perfectly in its eventual demise. It might run to 50,000 first. Suppose you shorted at 10,000, with $10K, meaning one bitcoin. When it goes to 50,000, you have to put up 40,000 to meet the margin requirement, so if it eventually goes to 0, all you make is 10K on a 50K outlay - or 20%. If that takes 5 years, that comes to just 4% annually. For a high-risk trader, that is nothing - useless tying up of capital. And if you think options is the way, again it is too lop-sided. On Dec 20, I took a screen shot of the option pricing for RIOT, March 2018 expiration (attached). Stock was trading at $35. The Mar 2018 35 PUT was trading for $18 (while the CALL was $4.00). Such disparity that shows every intelligent being knew it was going down big time. Unfortunately, if you bought the put, and this goes to $10 by then, all you would make would be 50% on the option. Too small for such a trade for me.
Those days are over. There is a good chance we never touch 20K again. Just look at SQ's daily chart, that is the roadmap.
I know this is the opinion of morgan stanley....I know they Are a major financial player so I know they would be against bitcoin but some of their reasoning as for why it's worth zero makes more sense than why it's trading above $10000!!!! http://www.businessinsider.com/morgan-stanley-on-bitcoin-value-2017-12