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BITCOIN: A Perfect Storm?
 August 03 2016 ( TradingView  )
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The Situation

​As the Cryptocurrencies market continue to emerge as it may become eventually one
serious ​alternative to the banking system as we know , it still face some serious challenge.
The main Cryptocurrency is BITCOIN.​ 
​ ​​
It is still controlled by the Chinese players and it trades then according to their means.
​​​Bitcoin Market Report: Five Chinese Exchanges Earn 96.25% Market Share

BITCOIN start to trade within a huge compression technical pattern since June 7 2016 as we keep making higher lows and lower highs ​trading pattern. ​It did break finally on the downside on July 31 2016 in a violent and volatile trading environment typical of those compression patterns.(See chart Below ​- Red Trendline - Ellipse).

It seems a perfect storm as within the same week we had the US Dollar weakening, a tax on real estate for foreigners for Vancouver and a fraud worth near 70M US$ on a BITCOIN exchange:
Dollar Bulls Tremble as Fed Hike Bets Pushed Deeper Into 2017
B.C. slaps 15% additional tax on foreign nationals buying property in Metro Vancouver​
Bitcoin drops 20% after $70M worth of Bitcoin was stolen from Bitfinex exchange
​​

The next major support technically speaking is around $472, the previous breakout level triggered on May 28 2016; breaking that will bring another nasty gap down for BITCOIN price wise.
​ ​(See chart below - Amber TrendLine)

So expect still a volatile trading environment for a few trading sessions for BITCOIN.



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BITCOIN: A Perfect Storm?   $BITCOIN  #Trading #bitcoin #investing  #cryptocurrency
Daily Candles Chart
​BITCOIN ( BTCUSD - Coinbase ) 

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