What if Bitcoin falls? | Hacked: Hacking Finance
Hacked: Hacking Finance


What if Bitcoin falls?

Posted on .

What if Bitcoin falls?


This article was posted on Thursday, 09:51, UTC.

It’s called digital gold for a reason. There are many parallels that we can draw between the physical asset that is the original form of money and this new digital asset that is the future of money.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

I remember a time back in 2009 when gold crossed $1000 an ounce for the first time. Investors were feeling generally uncertain about the future of Europe and inflation in the USA and were fast reverting to gold as a source of stability. Analysts were calling for $2000 an ounce, some were as aggressive as $5000.

(This chart shows the price from 1960 until today)

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

It never did get to $2000 though. The highest price came in at $1920 an ounce in 2011. At that time leverage requirements changed in the USA and eventually, sentiment shifted.

“In the long term, the price of gold will always rise.”

My grandfather taught me that and I still believe it’s true. If you’re a short term, high risk trader in a six year bear market that sentence bears little relevance.

The purpose of this writing is not to scare you. Rather, we need to note that cryptocurrencies are the most fast paced market since the beginning of time. I do believe that we’re moving to a digital economy very rapidly and that the value of the blockchain will need to rise sharply in order to support that, but as prices can fluctuate extremely rapidly, we should at least explore the possibility of where it might go if a major pullback does come.

// -- Get exclusive consultation for as low as $249 per month on MoneyMakers.com -- //

Always think about the other side of the coin. 😉


Japan has already legalized it. A major infrastructure change is coming very soon in the world’s third largest economy. We know that Bitflyer has signed a contract that ensures bitcoin is accepted at hundreds of thousands of retail stores across the island nation and that about 20 new bitcoin exchanges will be coming online shortly.

India is currently reviewing the option to legalize and regulate digital currency. After the harsh and rapid demonetization, they’re in sore need of an alternative to paper money. They have a panel working on it now and hopefully, we’ll get some good news in the coming weeks.

On or before Monday, May 15th, the SEC will deliver a decision to either approve or deny the world’s first bitcoin ETF, which if approved will open the markets to Billions of Dollars in institutional investments.

As I’m writing, the total market cap of bitcoin has just breached $30 Billion for the first time ever. A notable milestone but still not nearly enough to support the global economy, which now stands above $1 quadrillion.

However, according to coinmarketcap.com, the current volumes are coming from Poloniex, Kraken, and Bithumb (Korean exchange). Bitflyer is less than 3%. This tells me that most of the money flooding in at the moment is in fact, speculation money.

Technical Analysis

In January, I made a video called Bitcoin Rush, that descibed the simple technical analysis pattern that the price has been following.

You can see the video here:

Since that video, the pattern has held outstandingly well. Of course, past performance is not an indication of future price movement but if the pattern continues this is what we can expect.

This graph shows the price of bitcoin over the past year and a half.

The red, white, and yellow lines are covered in the video. To recap, every time the price breaks a line, it continues to surge until it finds an arbitrary price to turn around, then comes back to touch, or even dip below the previous line.

Since the video was made, the price went all the way up to $1336 (blue line) then indeed retraced back to the yellow line just below $775.

Let’s ignore for now the green circle, which is the excitement around the first SEC ETF decision. We can see the massive spikes on March 10th when the ETF was declined but the long term price moves were not affected.

Now, let’s hope that the price continues to rise, the tipping point comes, and we never see it at $1800 a coin again. But…. if we do see a retracement, there is no support on the chart until $1136, or possibly $1292 (the highest price inside the green circle). Either way, the next support is more than $500 away.

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. 

Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.

Feedback or Requests?

Mati Greenspan

Mati Greenspan


Senior Market Analyst at Etoro.com.

There are no comments.

View Comments (0) ...
The team:
Dmitriy Lavrov
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
P.H. Madore
ICO Analyst
P. H. Madore lives in Arkansas with his wife and children. He has covered the cryptocurrency beat over the course of hundreds of articles for Hacked’s sister site, CryptoCoinsNews, as Read More
Mate Csar
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Justin O’Connell
Justin O’Connell is a cryptocurrency journalist who works have appeared in the U.S.’s third largest weekly, the San Diego Reader & VICE. // -- Discuss and ask questions in our community Read More
Mati Greenspan
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
Cryptocurrencies ready for a third wave? This is not the…