The Chinese Yuan devaluation is now complete. The Chinese banksters realize the insiders can move money in and out of Bitcoin as a value store. A fake investigation of Chinese based Bitcoin exchanges covers the insiders asses while preserving this avenue for their future devaluation shenanigans. The result: No more margin trading (unless you use some other exchange location) and no more fee free trades in China. Did this impact the price of Bitcoin? No. Why would it?
The Yuan is as low as it can get against the USD. The USD is at a huge unsustainable high relative to all other currencies. As the USD devalues watch for what the Chinese do. This will give them ample opportunity to devalue the Yuan further. Can Trump save the US economy? That is the biggest question of the year and it will take that long to really find out.
For now we are in the doldrums. BTC is reverberating and it appears that the top blue dash resistance line is valid. I'm changing my outlook to wedging action between the red dash support and blue dash resistance to a point of $900 by July. The price can still get as low as $750 but should stay there only briefly.
This action will complete the classic "cup with handle" formation. Break out from the handle above $900 after July and the a secondary breakout in large volume from the cup formation is the cosmic event we are all waiting for. This could be the year it happens.
Countries currently in full panic: Venezuela, India, Mexico, China, Germany, France, Italy, Greece. Japan.
End of Lunar New Year starts a new round of YUAN devaluation. This is causing all kinds of futures contracts to short cover on Yuan denominated commodities exchanges. No effect on BTC but seeing some signs of price support solidification. Stay tuned.
There are some signs that the PBOC is causing discontent.
investigator
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A black swan event just took place. The PBOC has forced a temporary ban on BTC withdrawal from mainland China exchanges. This rally needed to end but government intervention is not a happy ending. Support is just below $900 for the current 4 month overheated trend line and just below $800 relative to the 2.5 year trend. Look for a breach in the 4 month trend before reinvesting the profits recently skimmed. I personally have pulled my base investment along with profits. The volatility is too sketchy and I need to be able to sleep at night. The info is available on Coindesk news feed. Keep a close eye on what's going on. I get the impression that this is not the only black swan. Small exchanges have been threatened with complete forced shutdown.
Some have said China has embraced capitalism. This intervention would never take place if that were true. The Chinese government is fascist and totalitarian. Total evil has shown through with this display of desperation and misdirected PANIC. The problem for them is not BTC. It's their stupid embrace of manipulated fiat banking.
investigator
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I love a good rally. This one looks like it has a little steam left in it. I would urge some caution again. It's time to skim a little profit for reinvesting later.
Nice chart and thoughts. Keep posting your thought process as it is most informative and helpful.
Cheers.
bysteven
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Germany might be a bit in panic, but only a few people know about BTC here...even my tech-savvy friends don't touch it...
investigator
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@bysteven, Yes, I was just listing the countries that have large central bank problems and not necessarily aware of BTC. India for one has almost no impact yet it is in the greatest turmoil and has affected a billion people. Venezuela has already gone over the edge and I would imagine that there are a few people that were able to convert out. There the USD is used as currency on the black market. Prior to China there seemed to be a large impact on BTC value from the South African Rand devaluation. This and all other area problems have been dwarfed by China just because there are so many early, techno-savvy, adopters there. I see Germany in an early panic only because the Euro and the EC are now threatened by a complete unravelling of unification. It's not just the new born nationalism but the wave of unassimilated immigrants resulting from out of control Anglo-Franco-American instigated wars across north Africa and in the middle east.
People in all of these countries would benefit greatly if they used BTC as a safe haven. Certainly gold, silver, the USD could also be used but they are easily confiscated by thieves, criminal or official. Although there have been some famous hacks, of which on one occasion I was a victim, I still think BTC is a safer and by far a more transportable safe haven then any other asset. This is only because it is difficult for the masses to understand what it is and how it can be of any value.
Thank you for commenting. I wish more people would voice their opinion.
bysteven
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@investigator, I really like your way of thinking and you are totally right about the "refugees" as a result of anglo-franco-american warfare in the middle east and north africa, that's exactly what it is. Many people here in Germany rather buy gold and silver as far as I know, well the sheeple still own their fonds and insurances. Personally I tend to invest in BTC mid-term to later (2018) go into metals before the whole thing blows up into civil unrest and more...you probably know the scenarios.