Bitcoin Price Breakout?

By
Venzen Khaosan @venzen
April 20, 2016

Bitcoin price pushed to a new high at resistance today, and we have to ask: Why another high when your bitcoins are fundamentally threatened?

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Bitcoin Price Analysis

Time of analysis: 14h00 UTC

OKCoin BTC/USD 4-Hour Chart

From the analysis pages of xbt.social, earlier today:

Another wave higher and this time to resistance in the rest of the charts, besides Bitstamp.

Before today, Huobi was leading the blind CNY buying, then at 0400 UTC, suddenly, OKCoin CNY was leading the market. Meanwhile, whoever has been painting the untradeable price blur at BTC-e started buying price to $431 on every dip lower.

If this was any other Bitcoin price advance, the reasonable conclusion would be that price is advancing. However, the current advance is irrational. A painfully slow advance has been unfolding since early March. Yes, there are previous instances showing price stalling in the chart, but for the first time, its uncertainty introduced by Gavin Andresen and a bunch of half-wit developers threatening a hardfork for Silicon Valley Big Business.

On previous occasions, when Bitcoin price paused or drew level, there was some technical factor in the chart, but this time it’s straight-out fundamental insecurity. Andresen and Classic(TM) want to turn Bitcoin into a decentralized frankenstein of Visa and Your Life’s Best Bank. That can never work. The logical conclusion would be to centralize Bitcoin and sell it to the highest bidder.

Defiant and censorship resistant as the Core version of Bitcoin is, it depends on a high degree of decentralization for the protocol to retain fidelity. Just as Nixon or Obama have not honored the role of President, Andresen has not honored Bitcoin’s rule of Consensus, and so, a fundamental devaluation is part and parcel of Andresen’s clandestine business agreements with profiteering exchanges, miners and criminal banks.

You can buy bitcoin, but do you believe Andresen and Co. can guarantee its value? Rational investors and traders cannot. That’s why the price wave since March has been irrational and is doomed to break down eventually.

Summary

Without consensus Bitcoin is meaningless. $500, $1000, it can disappear in a moment when Classic lurches online and destroys coins. Nevermind technical problems, Satoshi Nakamoto requires that we only change the Bitcoin protocol on consensus – on near-unanimous approval. Classic(TM) has been lobbying favors and deals with banks and exchanges at 75% approval. How is that consensus? Agent Andresen and his players must not be allowed to hijack this blockchain.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

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Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

Last modified (UTC): April 21, 2016 05:30

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