BitCoin is down in DEATH SPIRAL and now under 4000 USD

Bitcoin’s defense of key long-term support (4000) for the second time in four days is a positive sign for a potential recovery rally.

The leading cryptocurrency by market value fell below $4,242 (low of Wednesday’s inside-day candle) in the Asian trading hours, putting the bears back into the driver’s seat. As a result, BTC fell below the 200-week exponential moving average (EMA) of $4,182 earlier today.

The breach of the EMA support, however, may have trapped the bears on the wrong side of the market, as BTC is currently trading at $4,330 on Bitstamp, having clocked an intraday low of $4,061 earlier today.

It is worth noting that the long-term EMA was first breached on Tuesday. The subsequent sell-off, however, ended at the 14-month low of $4,048 and prices recovered to $4,500 on the following day.

The repeated failure to beat the long-term support indicates the bears have likely run out of steam. As a result, a stronger corrective rally could be in the offing.

To be fair, the CoinDesk guy did point out the end ramifications of blasting thru lower support.

A weekly close on Sunday (UTC time) below the 200-week EMA of $4,182 could prove costly, as the next major support is located directly at $3,100 (200-week simple moving average).

What was the high?

Bit Coin investor profile # 23

Pie -in - the-sky neighbor had an eviction notice on his door day before Thanksgiving.

I initially invested like $1,800, mentally thinking I would either be throwing a small amount of money away or making a little vacation money. It went up to $3,000+ at one point.

It's now at like $450.

There goes that vacation! Shoulda sold when I had the chance.

Fortunately, there were still some good money$-making opportunities for the smart traders, such as TRONCLASSIC (+78%!) Spectre.ai (+37%), Prizm (+17%), Nexty (+12%), and Centrality (+11%). Even Smartlands (+2.5%) will do for a profit (assuming you trade in enough volume to overcome exchange costs).

This is why is it important to diversify and have investments in other asset classes. However, most people who are invested in crypto don't understand that, and just say HODL and buy the Dip. I am a supporter of crypto, but I also have investments in forex, etfs, and equities. I put no more than 10-20 percent in crypto, made some profits, and even though my portfolio is down, it does not hurt my overall picture of investing.

It's quite clear that prices were manipulated through tether, and investors are dumping. As soon as it was announced that the USJD was going to investigate tether ( Bitfinex), a lot of dumps started to happen.

I would suggest those who are still invested in crypto to move your portfolio into a stable coin until the smoke clears ( and that is if it clears. It might not.). You have to stop your losses.

Expert traders stop their losses quickly, and move on. They are impatient with losses and patient with gains, because they understand risk management. They just don't HODL and buy the Dip.

Now that bitcoin is close to 3500, people who got in at 300.00 have to be worrying at this point, and that might be the people who are dumping, which would be a smart move. Get out with a profit and move the money into other asset classes, similar to traders moving their money into bonds during a serious stock crash to protect their earnings.

Good luck to everyone, and don't give up investing. Keep in mind Warren Buffet bought a shoe company with 400million dollars in stock, it went belly-up right after he bought it. He said that those stocks would be worth 5 billion dollars today. Trading and investing have its ups and downs, and investors lose money, but they make sure that their gains are more than their losses, and they never lose sight of risk management.

good luck.

So-called Industry insiders are saying it will bottom to 3000?! Nice try on their scare tactic, designed to get us to sell, while they pick-off the lows.

https://www.cnbc.com/2018/11/23/bitcoin-will-fall-30percent-before-bottoming-at-3000-crypto-trader.html

This could very well simply be a strong US dollar upticking from Trump admin shenanigans, and NOT an overall weakness in crypto entities.

Part of the negative naysayers "trick" is to ALWAYS exaggerate the losses.

For instance, they are saying that it's a "30%" drop down to the next "support level" at 3000 (arbitrary fiat USD).

But in reality, from the high of 20000, the 1000 drop (from 4000 to 3000) is only 5%. This is 6 times less than they are making it out to be!! You have to wonder why the propaganda....

By their math, BTC lost -50% from 20000 to 10000, another -50% from 10000 to 5000, another -20% from 5000 to 4000 ...... wait, it already lost 50+50 = 100% down to 5000, how could it lose anymore???!

Or:

“An effect of the plummeting cryptocurrency prices is a significant depreciation to the capitalization of the entire market. Just seven days ago, the market was valued at $182 billion, but that number has since fallen $54 billion, or 30 percent to where it now stands at $128 billion, its lowest value since September 2017.”

-Zerohedge, 11/24/2018

I tried to warn u nggaz

Few projects have done as much to explore crypto micropayments as the year-old Yalls blog created by Lightning Labs developer Alex Bosworth.

From April through early November, Bosworth said, blog participants have processed nearly 20,000 invoices with the Lightning Network, a bitcoin scaling solution that makes micropayments feasible by keeping them off the blockchain, sidestepping network transaction fees.

It costs roughly one cent to read a Yalls article, half a cent to leave a comment on a post, and 10 cents to react to a post with an emoji. Publishing an article is free.

“One nice thing about micropayments is that it brings back anonymity to the web,” Bosworth told CoinDesk. “I’m really a fan of the idea that your identity doesn’t have to be tied to a username and password.”

No Passw0rd on LRC wrote:

It costs roughly one cent to read a Yalls article, half a cent to leave a comment on a post, and 10 cents to react to a post with an emoji. Publishing an article is free.

WTF, an emoji is 20x as expensive (in BTC) as leaving a comment??!

Put some Options wrote:

To be fair, the CoinDesk guy did point out the end ramifications of blasting thru lower support.

A weekly close on Sunday (UTC time) below the 200-week EMA of $4,182 could prove costly, as the next major support is located directly at $3,100 (200-week simple moving average).

Technical analysis is good to know, only because some bozos believe it and it necessary to know how others trade.

technical analysis guys are funny wrote:

Technical analysis is good to know, only because some bozos believe it and it necessary to know how others trade.

bozos = program traders

Those who know use a combination of fundamental analysis and insider info. Was Gordon Gekko walking talking about support and resistance? Do you ever hear Warren Buffet talking about 52 week peak and trough?

Those who know ... wrote:

Those who know use a combination of fundamental analysis and insider info. Was Gordon Gekko walking talking about support and resistance? Do you ever hear Warren Buffet talking about 52 week peak and trough?

you are so right, bro.

Warren Buffet said a great quote:

" I don't know when to buy stocks, but I know whether to buy stocks"

He does not focus on buying at the high or the low, he just knows that Coca- Cola has been around since the late 1800s, and is a very profitable company, so he buys the stock.

Scorpion_runner wrote:

Those who know ... wrote:

Those who know use a combination of fundamental analysis and insider info. Was Gordon Gekko walking talking about support and resistance? Do you ever hear Warren Buffet talking about 52 week peak and trough?

you are so right, bro.

Warren Buffet said a great quote:

" I don't know when to buy stocks, but I know whether to buy stocks"

He does not focus on buying at the high or the low, he just knows that Coca- Cola has been around since the late 1800s, and is a very profitable company, so he buys the stock.

Warren "All-YouCanEAT" Buffet is a VERY RICH MAN.

It is easy for Mr. Buffet to pass through the EYE of a needle.

For Example:

Coca-Cola Seen Falling 14% Despite Strong Results By Michael J. Kramer | July 26, 2018 — 12:30 PM EDT

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(Note: The author of this fundamental analysis is a financial writer and portfolio manager.)

Coca-Cola Co. (KO) shares have soared by nearly 12% since the middle of May, easily surpassing the rise in the S&P 500 of just 4%. But the ride over the past year has not been nearly as smooth, with the stock only rising by about 3%. Some options traders are betting that the recent rally will soon fizzle, and they expect shares of the beverage company to plunge by about 14% by the middle of January.

On Wednesday, the company reported solid quarterly results beating revenue on both the top and bottom lines. Despite the better results, analysts have lowered their estimates for the third quarter while forecasting a sharp decline in revenue.

KO Chart

KO data by YCharts

Betting on a Big Drop

Some traders were less than impressed with Coke's results and are betting shares of the stock fall by options expiration on Jan. 18. Open interest levels at the $40 strike price puts nearly doubled to 34,000 open contracts, after the company's results. The stock would need to fall to roughly $39.75 for the buyer of the puts to break even if holding the options until expiration, a drop of about 14% from the stock’s current price around $46.50.

Mixed Outlook

KO EPS Estimates for Current Quarter Chart

KO EPS Estimates for Current Quarter data by YCharts

Analysts are forecasting substantial earnings growth in the coming third quarter, looking for a growth rate of more than 10%. However, revenue is expected to decline by over 9% versus last year. Additionally, analysts have trimmed their estimates for earnings by nearly 2 percentage points while also reducing revenue forecast by about 60 bps. The outlook for the year is almost identical to the quarter, with earnings expected to grow by nearly 9%, while revenue is seen falling by over 10%.

Not Cheap!!!

KO PE Ratio (Forward 1y) Chart

KO P/E Ratio (Forward 1y) data by YCharts

Shares of Coke do not come cheap, trading at nearly 21 times 2019 earnings estimates, higher than the S&P 500 2019 earnings multiple of about 17.3. It makes shares of Coke not only expensive when adjusted for earnings growth but against the market as well.

Read more: Coca-Cola Seen Falling 14% Despite Strong Results | Investopedia

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