Bitcoin May Have Found A Bottom...The Bottom Of Credit Suisse

Everyone is out looking for bottom-callers to make them feel better. I mildly obliged last night, throwing in a "this is probably a good spot to buy" at about $6060. It's still far too early to say, but little did I know what a clean bottom Bitcoin was about to put in. If this holds, I'll have been within 1%.

6k Bottom 1.png

A sure sign some lazy buyer/traders are setting limit buys at exactly $6,000.

I honestly can't remember ever seeing such an exact bottom on a chart. $6000 and .00 cents indicates a buyer was sitting with large enough limit order right at $6000 to stop the downtrend to the penny. I'd call it a fairly bullish sign, as we're already up almost 30% from that bottom ($7678 at time of writing), but predicting this market is practically guessing.

6k Bottom 2.png

We could be forgiven for thinking $10,000 would serve as stronger support.

What's causing the crash? There's chatter, yet again, of China shutting down all access to foreign cryptocurrency exchanges, rather than simply the domestic ones. Of course, this is nothing new.

A more interesting possible explanation for the increasing degree of this dip may be found in the US equity markets. The stock markets all dumped, and the BTC/Vix (volatility index) inverse correlation has suddenly broken.

BTC v Vix.jpg

Let's hope this correlation is broken without further BTC downside.

This proved to be bad news for Credit Suisse, the custodian and largest holder of XIV, the reverse VIX ETF. Oh well, it's a major bank, so screw 'em! Reportedly, they "only" lost 2 quarters worth of profits...

6k Bottom 3.png

In stocks, they actually call this a crash (20 -> 16).

Long-term, I can only assume such market turmoil is a positive for "alternate assets" such as Bitcoin.

Hodl accordingly.

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