is an interesting Interview of the NZZ (Zurich, Switzerland) with
Thomas Peterffy the founder of Interactive Brokers! He sees
possible bankruptcies of brokers and clearing houses due to the high
volatilty of the bitcoins combined with the very low liquidity of the
markt and he thinks about offering Bitcoins but only to buy them -
imho other brokers might follow.
In the short term,
the price (for Bitcoins) should tend upwards rather than downwards.
In the long run, I expect Bitcoin to become worthless.
In fact, it
(Bitcoins) is not bound to anything. I am really worried about plans
to place futures contracts on bitcoin.
(Clearing houses) want to process and settle these products together
with other derivatives. In the so-called Clearing houses, many
brokers are represented with very little equity capital. If investors
should speculate, because Bitcoin can reach almost any price level in
a very short time, they could get into difficulties and no longer
fulfil their obligations to the Clearing house. I haven't been able
to stop the project yet.
What is certain is
that the Chicago Mercantile Exchange, the operator of the world's
largest derivatives market, intends to start trading in bitcoin
futures in the second week of December.
The day will come
when the price of the Bitcoin product moves so strongly that some
investors and brokers will experience financial difficulties - which
can lead to losses like in 2008 when Lehman Brothers went down. This
would affect not only Interactive Brokers, but also the other
clearing house members and some Swiss banks.
(NZZ:) Do they
not share your concerns?
This is a problem of
the back-office, for which leading bank managers are usually not
particularly interested at first.
(NZZ:) Is that a
Therefore, I plead for Bitcoin products to be invoiced in a legally
independent unit. In case of problems, only Bitcoin customers would
have to bear the consequences. Otherwise, others would also be
affected who only trade with the usual forward exchange, index or
interest rate products.
futures trading with Bitcoin make any sense at all - the volatility
is enormous and the liquidity low?
Yes, if it is
separated from the rest of the trading process. Trading would
probably calm down and an interesting market could develop.
Interactive Brokers customers are not yet able to trade with
Bitcoin. Will that change?
Possibly. However, I
would only allow the purchase and prevent bets on falling prices.
Let me add my personal remark. Do you remember when the Swiss Frank jumps ~25% against the USD? Alapari, England, bankrupts. This might happen again, so be careful if your broker offers Bitcoins and other cryptos. It's a very dangerous triangle: high volatility, low liquidity and a low capitalisation!
WHO CAN ANSWER THE QUESTION:
... But could it break 20,000 $?
The fact that it becomes possible to short Bitcoin may very well destroy it.
This was not possible before and now the 'big boy's' can apply their so beloved pumping and dumping tactics to push and pull the trend as they desire.
You can already spot this on the charts.
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2017.12.07 10:14
Bitcoin has breached $14,000 (based on the article)
The chart was made on D1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicator from CodeBase:
No comment :
Sergey Golubev, 2017.12.08 07:25
What Does Bitcoin's Meteoric Rise Mean For Investors? (based on the article)
The daily price is testing the resistance level at 16,761 to above for the bullish breakout to be continuing.
Chart was made on MT5 with BrainTrading system (MT5) from this thread (free to download) as well as the following indicators from CodeBase:
All about BrainTrading system for MT5:
Sorry Sergey, I think this Bitcoin is out of any indicator.
It is moving unexpectedly in crazy mode!
Sorry again for my comment.
The situation is not a critical one - look at the chart:
The price is still moved to be inside the channel, and the correction will be started when the price breaks 13,000 to below.But Schaff Trend Cycle indicator is estimating the overbought condition, besides, Vortex indicator is forecasting the correction too (if red line of the indicator broke 0.7 to above level to 1,0 so we may see the real correction).
So, according to the indicators - "everything is under control" :)
Anyway, if the price breaks 17.xxx level to above on close H4/D1 bar so the bullish breakout will be continuing, if not so we may see the correction soon.