Quick Win by the Algorithm

Bitcoin (BTC) is a digital currency created in 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralised authority, unlike government-issued currencies. There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – are verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity.

Bitcoin holders experienced record highs in mid-December as Bitcoin soared above $19,000. Amidst regulatory concerns, the cryptocurrency plunged to two-month lows, dipping to $5,947.40 – according to CoinDesk. Given the decline, Bitcoin has lost over 50 percent this year.

At the time of writing, the total cryptocurrency market cap weighed in at $475 billion, down from January highs nearing $830 billion. Indeed, it is a significant reduction, however the lowest market cap was on the 6^th of February, at $276 billion.

The latest sell-off follows recent reports that have evoked fear of regulation, hackers and potential price manipulation at a major exchange. Furthermore, J.P. Morgan Chase, Bank of America and Citigroup has decided to ban cryptocurrency purchases by their credit card customers.

Bloomberg has reported that Bitfinex and Tether, the digital currency backed by the former’s executives, have been subpoenaed by the U.S. regulator. Additionally, Facebook has banned all crypto related ads, which has ultimately contributed to the corrective downtrend.

Indian Finance Minister Arun Jaitley’s comments were widely interpreted as a harsh crackdown on cryptocurrency, fueling broad regulatory fears on an international scale. During the budget speech, he stated “the government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.” In South Korea, previously announced “know your customer” rules on real-name cryptocurrency trading also went into effect this week.

Whilst the price dip and recovery has matched the recent drama in the stock market, this may be a correlation rather than causation.

On January 29th, 2018, I Know First issued a bearish 14 day forecast for Bitcoin (BTC). The forecast showed a signal of -78.96 and a predictability of 0.3. In accordance with the forecast, BTC fell by 24.26% over this period, solidifying another quick win by the I Know First algorithm.

Current I Know First subscribers received this bearish BTC forecast on January 29th, 2018. To subscribe today click here.

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Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.