Today’s bitcoin flash crash from around $8000 to $7300 was sudden and appeared to occur over the space of an hour, but if you look at the smaller time frames you can see that the bulk of the drop – a full 5.15% occurred within a space of 5 minutes.

The drop has been received as a cause for concern by some but it’s part of the cycle that carries all existence. The beauty of the bitcoin price is seen in its Fibonacci patterns of price action. In fact all existence operates under the Fibonacci pattern. It’s in nature, art, music, math and all else. It’s the music of the spheres...and of the price action in the bitcoin charts.

At present the drop to this point means that we have broken the month long support around $7700 and are likely to fall in price to the next support level. Some look to past levels of prolonged trading activity as levels of support, like around $6000 -6500 where we saw massive price stagnation for many weeks in late 2018. So this current drop could be the fall of price to the next support around mid $6000, and I wouldn’t be surprised if it plays out like that over time.

This bearish forecast is supported by the fact that we are currently sitting below the 200 day EMA moving average and have been in a downtrend since 26 June, when price peaked around $14000. So we are approaching a 50% drop since then, which sounds huge because it is. That is, however, normal for bitcoin though, and I wouldn’t be surprised if we go lower. All of this on the way to the moon in the long term of course.

After watching charts for two years now, I’m still only a beginner, learning daily with study and experience of chart observation. So don’t take my opinions as advice in any way. This is merely my personal subjective view based on TA. There is also a bullish case that bitcoin price rebounds here around $7200, which is the bottom of the current three month-long descending wedge, since the peak at $14000.

The fact that the first half of this year brought us such a massive parabolic bull run, would suggest that in response, a massive retracement back to the earlier lows of the year might be a natural part of bitcoin’s cycle. One more drop to the lower support before the next bull run. I’m considering buying in now but not all at once. I prefer to DCA or dollar cost average, and buy a little now at this dip but wait for a possible lower dip to buy in still more then.

As you can imagine, the bitcoin price drop took most of the altcoins down along with it. Some by as much as 10% drop in a flash. The correlation between all the other cryptocurrencies and bitcoin itself is at a high point lately. With all the altcoins, including Ether, taking still more of a knock, it looks like alt season is a thing of the past. Some alts may return, but not to their former glory and not as many of them.

One cryptocurrency that is making huge leaps forward are the stable coins. In fact it looks like USDTether is dominating the markets. If you think about it for a moment, these stable coins are basically digital dollars, or crypto dollars. In other words the dollar has already gone digital and crypto, even if not used by the government yet. Although in certain states in America you can pay your municipal bills in crypto.

So these stable coins are a blessing and a curse because they are also taking a lot of focus and capital away from bitcoin, suppressing the price. The printing of such huge masses of Tether could be seen as a cause for concern. People flock to them as a safe haven when bitcoin and the alts drop at times like today. And the alts drop because traders sell them fast back into bitcoin to prevent further losses. So the race is on between Tether and bitcoin as to who gets the market cap. Tether could turn out to be the poison chalice to crypto because now traders are not keeping bitcoin but selling it for Tether to capture profits.

It’s completely understandable that Tether would become so popular as a tool and a store of value. It is apparently backed one to one by dollars but forensics has concluded that it is only 75% backed by dollars, so Tether is an artificially inflated cryptocurrency that is acquiring the bad qualities of the fiat dollar, in that it is just printed, imaginary or imitation money with less to back it that we are led to believe. The fiat dollar has nothing but military might to back it and Tether is backed by only three quarters in dollars. Thus a quarter of Tether is fake. And these are old figures from a year or more ago stored in my memory from articles I read.

Curiously Facebook CEO MZ is before the US senate hearing today defending the Libra coin as backed one to one by a “basket of currencies” and other highly liquid asses, whatever that means. Libra is not getting much support though, understandably. It’s a race by corporations and countries to see who can get their digital currency out first. China could beat America in that regard. In China there is already an equivalent of Facebook’s Libra coin, and it runs on Wechat and Alipay, their equivalent of WhatsApp and PayPal to a degree. Those two corporations are of course largely government-controlled, so the one-party dictatorship state has the reigns there. Nobody wants a private company handling all our financial and other data, when they have been known to use our data for profit and possibly monitoring.

So my personal conclusion is that the bitcoin industry – as far as trading and making money is concerned – is manipulated by whales and other questionable actors, and yet has a life of its own and has never disappointed when it comes to new ATHs after each “halving”. With an overall fall of close to 8% already today in this flash crash, the downtrend in bitcoin price may not be over. We will hear rumors of what caused the sudden crash because 5% in 5 minutes is a bit suspect. Something happened to the network there. We have stabilized for now so buy the dip, as they say, or short this trend if you’re day trading. Up or down – there is always money to be made in bitcoin’s price volatility – if you have the knack.





