GMT20140614 3:07 Trend Analysis of Democurrency

Bitcoin:

$580 is the bottom. The reasons are as follows:

1. The price has moved sideways at $580 in this round up.

2. The left shoulder bottom is at $580, and there are few profit taking chips at this point.

The price falls greatly at foreign market and its shape looks bad.

When the price falls, lots of people scramble to sell their coins like next minute it will be 0. In the end there is few wave of selling. Most of this wave of selling are coin hoarding miners. The miners can be divided into two kinds: the first are those sell coins immediately after mined and these are a stable selling pressure. The second are those hoard coins, and they will sell at price dive. As average ,both side has the same revenue.

There are two bad news recently. One is that the computing power in GHASH mining pool has reached over 50%. The other is the Bitcoin auction by FBI.

The effect of GHASH is the key factor in such delicate balance circumstance. It is not a big deed, and just be used. Now It’s OK after Bitcoin price falls.

The effect of FBI will help guide the price. The auction price will be not necessarily below the market price. Buyers will bid a price at where 28000 coins are collected from selling orders of all exchanges. If the price had not fallen, the price will be lower than market price. Now the market price fell, so the auction price will be higher than market price. Another effect is that many big buyers will stop buying from the open market, and they are waiting for the auction. Let’s say 5 bidders, that will hold 140K Bitcoin buying order, making shortage of buying in the market and caused Bitcoin price to drop. When auction has ended and the buying power retursn to market, Bitcoin will surge again.