Bottom-Of-The-Barrel Prediction on 2018 BTC Bear

Closing In on the Last Dip Before the Bull Run

It’s been a quiet spring and summer for me, but I have been watching the cryptocurrency market like a hawk. I haven’t had to say much, because the market has been doing exactly what I thought it would do… continue the correction.

But the question remains, just how low will big brother Bitcoin go before the bear market finally draws to a close? We will take a look at the latest chart from Trading view and we’ll discuss the possibilities.

Before I reveal my predictions, I will say that everything I called for since February of 2018 has been on-point. I wasn’t fooled by all of the premature bull market predictions. Exactly all of them have failed to come true. I’m still surprised that so many “experts” thought a bull market could emerge before the market has run its course.

Never in the history of the stock market OR the cryptocurrency market have we seen the pattern broken. You can set your clock by it. The four phases of accumulation, consolidation, markup, and distribution must happen. It’s scientific, and it’s the result of human nature combined with the extremely small percentage of “whales” who play the general public’s tendency to be controlled by emotion.

Since the inception of the stock market, we’ve seen it… after a major run, the insiders pull out and leave the public holding the bag. The lack of tremendous buying pressure leaves the market to fall, and the 4-step process repeats itself.

That being said, let’s take a look at the chart and I’ll share with you what I see in the range of possibilities.

Up until a week ago, we thought 6200 was the rock-bottom level for BTC. Last winter, my eyes were telling me that 5500 was possible, and at worst-case, 3200. I thought I was wrong. Nothing could have convinced me that we would ever see anything less than 5000 as of last month. But the dive we just witnessed opens those doors of possibility yet again.

Now that we have seen BTC violate the floor level of 6200 and even plunge below 5500, there’s no base that we can count on that will hold down the fort. We have to go to previous bull run levels to determine the new possibilities for bottom-level price action, which we see on this chart at 3200 and again at roughly 4200.

The velocity of the big dip we just witnessed tells me that it is entirely possible, and it can happen fast. We’re talking “in-the-blink-of-an-eye” fast. The overall momentum is still downward, and the rallies are not breaking the bear market pattern.

Take a close look at the stars that I have indicated on the stochastic chart. Whenever BTC was seriously oversold, it rallied hard. But you’ll notice that on each rally, the peak stochastic was was reflecting a maximum buying pressure point that did not break the overall downtrend.

After every rally, the peaks are lower. Look at the succession of red arrows which represent the declining peaks, confirming the continuation of the big ugly bear market. But after every smack-down, BTC found support at the base. Not on the last one.

That’s why we have to look at the previous support levels before the 2017 run to find out what is possible for the next low points. The orange box represents the “Bottom-of-the-barrel” zone of possibility, and this is a worst-case.

BTC could certainly rally and start a reversal. But it’s not likely, based on the recent action. It’s always best to prepare for the worst. That means you should consider a trading zone of 3200 to 4200 BEFORE you throw your money into the crypto market in anticipation of the December rally.

And yes, I did say December rally. I fully expect this to happen. We will see a rally. At worst-case, we will find a bottom point and then start the accumulation/consolidation phase in December with a nice spike that falls by the new year. Best case scenario would be BTC eclipsing the all-time high of 2017.

It’s best to assume that we have not yet had enough time to properly complete the accumulation/consolidation phase. We might be in for a boring 12 months if we don’t see a major spike in December of 2018. All we have to do is look at the history of the market, and it will give us clues as to what can happen.

The SAFEST way to play the market at this point is to wait until we have confirmation of a true bottom, with a nice flat quiet accumulation period. When the volume of the market jumps up like a shelf and we trade sideways again at new base levels, that will be enough evidence to tell us we are in consolidation, which is the safest time to invest in my humble opinion.

Make no mistake about it, cryptocurrency is the future, and it’s the natural evolution of trading value among human beings. Nothing will stop this from happening. The only question is, how long will it take before we hit critical mass?

Time will tell. Until then, we’ll keep our eyes on the charts.

Carlton Flowers
The Crypto Pro

Should We Prepare for an Extended Crypto Bear Market?

WHY PLAYING IT "SAFE" COULD BE THE BEST STRATEGY

It's June 2018 and BTC continues its bear trend despite multiple incorrect predictions over the past few months from several noteworthy forecasters who thought the bull market should have already started.

The most common belief among the prognosticators was that $6,200 BTC was a big support level that would be a pivot point. As we now know, that prediction failed miserably.

The entire alt-coin market has also mirrored Bitcoin. None of the alts have broken free from the overall downtrend since the December 2017 all-time high. All of the alt coins appear to be in lock-step with big brother Bitcoin, and it is safe to assume that none of them have matured to the point that they can bust loose and deviate from its path.

The big question looming in everyone's mind is, "has Bitcoin hit rock-bottom?" But the question shoulnd't center around figuring out Bitcoin's "rock-bottom" price. It should be understanding what happens overall, based on how price activity develops.

When you look at the big picture, you can decide if you're the type of person who would feel more comfortable holding a position for several years through the ups and downs, or if you prefer to take a break in the short-term until the market turns around.

My advice to everyone is to play it safe and look at the worst-case scenario, despite all of the talk about an immediate reversal. In order to do this, we must look at the 1-week chart dating back as far as possible to get a birds-eye view.

In this analysis, we'll take a look at the overall action on the 1-week candles for Bitcoin dating back to 2016. It's necessary to zoom out as far as possible in order to get an idea of what the worst-case scenario could be.

Let's begin by identifying the current trend. In Figure 1, we can clearly see that the current downtrend is not your average correction in the midst of a rising market. After the peak in December 2017, we see lower highs and higher lows for 6 straight months.

The last time we saw an extended bear market like this was from November of 2013 all the way to January of 2015. That was a bit more than one solid year of a downtrend. But what we need to pay the most close attention to is what happened at the end of that extended bear market, which I notated in Figure 2 below.

Before the 2013 bull run spike, we saw smaller breakouts and corrections that did not span the time of what we saw in this overall picture from 2013 to 2015. This is key.

In January of 2015, a quiet accumulation period of 9 months developed before the the market ticked up to the next accumulation level in June of 2016. That next level of accumulation lasted through April of 2017. We could actually call this a period of "consolidation".

In April of 2017 the bulls took full control and the charge started. It took us all the way to Bitcoin's peak of over $19,000 before getting swatted down despite all of the hype and anticipation of breaking the $20,000 barrier. The bear market officially started, and continues on through today.

The biggest point that I want to make is this: we have yet to see a bull run jump right out of a bear market without a period of quiet accumulation followed by a consolidation phase.

It just doesn't happen! Trend reversals take time to develop, and you can't short-cut the process. That's why it is best to turn a deaf ear to all of the ridiculous bull market predictions that we have been seeing week in and week out since the all-time high.

Going back to Figure 1, I believe that the worst-case scenario that we all have to take into consideration is the trading zone delineated by the red box. I don't base this solely on the history of BTC, but by the age-old rule of the four phases of market action which are as follows:

• Accumulation
• Consolidation
• Markup
• Distribution

This is how the stock market has traded in all of history, and the only difference between the stock market and the cryptocurrency market is the time it takes to move through all four of these phases. The cryptocurrency market cuts the overall time down from 13 year cycles to a year or two.

After the all-time high in December of 2017, we have a period of "distribution", or an extended selloff. Before we can see the next BTC moon-shot, we have to see an accumulation and consolidation phase. It won't happen overnight.

While I am not a financial advisor or a professional who gives investment advice, I think everyone can learn from what history has taught us. And for those of us who are not able to invest a Brinks truck full of cash into the crypto market, it's best to play it safe and take the most conservative approach to investing.

Time will only tell. I could be dead-wrong. But taking this approach to predicting the next BTC movement will certainly prevent me from losing the last bit of change jingling in my pockets.

Carlton Flowers
The CryptoPro

Stock Market and Cryptocurrency Market Crash? Here's What You Need To Know

INSIGHT FROM ALESSIO RASTANI ON IMPENDING MARKET DIVE

Alessio Rastani had some very intriguing comments about the recent activity in the markets, and it is something we all need to take heed to. He has been consistently one of the best market analysts that I have come across, and he is usually right when he makes educated guesses about future market direction and trends analysis.

If we are all prepared, we can position ourselves to not only survive a market crash, but to benefit from it. They key is being smart about how and when you invest your money, and the best advice is to mirror the biggest players in the markets.

Across the stock market and cryptocurrency market, we have touched upon some major critical levels since the beginning of the year. In February, we had a panic sell moment, and from all indications, we are about to retest those levels.

Jason Geppert put out a report on Friday that the “smart money”, or institutional money, is pulling out of the stock market. If this causes a drop below the 200-day moving average and go deeper beyond the February lows, this will trigger a Dow Theory Sell Signal.

When this happens, the sell signal triggers sell programs across the markets that will drive the S&P 500 and the Stock Market much lower due to these automatic market orders. This will cause the stock market to fall hard. This is something we will have to plan for.

If the stock market holds when it touches on the 200EMA and recovers, this will be a very good indication of a turnaround. But we all need to be prepared for what will happen if the market violates this critical support level.

If you are investing your hard-earned money on the stock market or the cryptocurrency market, slow your roll. Be smart about it. Now is definitely NOT the time to risk your retirement, your savings, or invest anything you cannot afford to lose. The only way to invest in this dangerous time is to plan for the worst.

Experienced traders can "short" the market, or bet on stocks and crypto coins to fall, rather than rise. This is a super dangerous strategy, and you must have a margin account to do so. But if you lose, you will lose big.

Another method that experienced traders employ to gain from a down trend is to buy on dips, and sell on rallies. This is also dangerous, but I have seen this done with great success. It is much less dangerous than playing the market on margin, however.

The best thing to do is to study the market each and every day, listening to the top market forecasters so you can determine the point at which the market will turn around and start to climb again.

The stock market works on long cycles, as long as 13 years at a time. It rotates from a time of quiet accumulation with very little volatility to a time of heightened trading volume and a slight bump in stock prices, which is called "consolidation". Next comes a major run-up, or "Bull Market", and then the institutional investors pull out and take profits. That is called "distribution".

What normally happens during the distribution phase is that institutional investors, or "smart money", sells into the frenzy while the general public continues to buy with reckless abandon. Once the average Joe investors exhaust all of their resources, the prices drop like a rock. By that time, the smart money investors are long gone, having made tremendous profits.

Right now, I believe that the institutional investors have come to realize that cryptocurrency is the future. Smart money investors are not going to sit back and watch the general public amass the wealth of the world on a major change. They will position themselves to protect their assets. They have the power to drive the markets down to the basement, and then snap up the low priced cryptocurrencies at bargain prices.

This way, they end up on top of things once the changeover is complete. This is exactly what we are seeing in the oil industry. For decades, the oil industry denied that clean energy (like solar and wind power) would become the future. But now we are watching the oil industry giants lead the way investing heavily into clean energy. The result? They will still be on top of the world when the paradigm shift has completed.

Keep that in mind while you watch the market action in the coming months. Do your due diligence, plan for the worst, and capitalize on it.

Carlton Flowers
The Crypto Oracle

Understanding the Size of the Cryptocurrency Movement

THE PARADIGM SHIFT IS JUST BEGINNING...

Each and every day I study more and more about cryptocurrency and Bitcoin. The more I study, the bigger the entire picture gets. I cannot even wrap my mind around it just yet. And things have not even come to a head.

Right now, the majority of people in the world have no earthly idea of how big this paradigm shift is shaping up to be. We still here talk of the cryptocurrency market being a "bubble", or some passing phase that will eventually crumble once governments and bankers put an end to it. The reason so many people remain clueless is the fact that the crypto market has not hit critical mass.

Conventional wisdom says, "the government will shut it down because they'll never allow something to take away their power". But the truth of the matter is, it's already out of their hands. There is nothing that will stop the masses of people in the world from doing what is natural, which is participating in trade.

When people say that Bitcoin or other cryptocurrencies won't last, or that the big bubble will burst, they speak out of ignorance. It would be as ridiculous as saying that people trading products and services will "burst" one day. That will never happen.

As long as there are human beings who live in this world, there will always be trade. And Bitcoin has revolutionized the ability for humans to do what comes naturally... trade with each other, without the interference of governments and banks.

The benefits of how cryptocurrencies work, along with the Blockchain, far outweigh the antiquated system of fiat currencies that are in use today. Comparing a fiat currency like the US dollar to Bitcoin would be like comparing a typewriter to a cutting edge personal computer system connected to the World Wide Web. You just can't draw a comparison.

Another example would be comparing the benefits to going back to horse-drawn carriages and mules and abandoning motor vehicles, airplanes, and high speed trains, because we have more ability to control horses and mules. That wouldn't make much sense.

Neither does the thinking that fiat currency will prevail and cryptocurrencies will disappear over time.

This is not a fad, or a passing phase. It's a monumental paradigm shift in the way the citizens of Earth will interact with each other. And that explanation does not even come close to doing it justice. I'm not educated on this topic enough to even begin to be able to paint a proper picture.

I'll be explaining a lot of the basics of cryptocurrency, the Blockchain, and the advantages of the shift to this futuristic platform for monetary exchange over the coming months. If you have questions, please post them in the comments below, and I might use your questions for a future post topic.

Carlton Flowers
The Crypto Pro

How to Get Started In Cryptocurrency with Coinbase

GETTING STARTED BUYING CRYPTOCURRENCY WITH COINBASE

I got started 3 days ago with my first purchase of Bitcoin only three days ago at an entry price of $9675.81 for one Bitcoin. It was a super confusing process, and was very frustrating. But I fumbled my way through it after studying it for several days.

I didn't have an extra $9675.81 sitting around to buy one Bitcoin. Fortunately, you don't have to buy an entire whole "coin". You can buy a fraction of a coin with whatever amount of money you have.

I used my Mastercard to purchase $300 worth of Bitcoin, and after the 3.99% fee for transferring money from my credit card to my account, I had $288.46 worth of Bitcoin to begin with.

First, I registered an account at Coinbase.com. You can either transfer money from a bank account, or you can use a credit card. It's easier to use a credit card, even though the fee is a little bit higher. Connecting your bank account takes a little more time.

When you register for an account and deposit at least $100, Coinbase will give you $10 extra for free if you use a referral. I messed up and missed out on the $10 bonus, but if you use my referral code in the link above or by clicking on the picture, you can receive the free $10.

Via Coinbase, you can purchase Bitcoin, Ethereum, or Litecoin. These are three major cryptocurrencies. There are 843 other cryptocurrencies that you can purchase outside of Coinbase, and you'll need to use another exchange service to do that. But we'll get to that later.

After owning my first $288 of Bitcoin, the value has risen as high as $338 within the first few days because it is moving roughly 10% per day. The market price of Bitcoin jumps up and down, but the overall trend is growing upward at a rapid rate.

There is talk of Bitcoin growing from the current price of $10,483 at the time I am writing this blog post to somewhere between $25,000 and $40,000 within the next year. The reason this is happening is because there is a finite amount of Bitcoins available to be bought on the market.

As of June 2017, there were 16.4 million Bitcoins created. The limit is 21 million. Right now, new Bitcoins are being created by the process of "mining". You can read my previous posts to get an understanding of what that means, but this is the reason for the rapid rise in value.

Bitcoins cannot be inflated by governments. Nobody has the ability to "print" Bitcoin money like the government prints the US Dollar. As you are reading this, there is a huge shift of investment into Bitcoins taking place.

Banks, institutions, businesses, and individuals are buying up Bitcoins. The number of people coming into the Bitcoin market in the near future is enormous. It will cause the value to continue to be driven up into the stratosphere.

After you purchase your initial amount of Bitcoin on the Coinbase site, you can register an account with the exchange service at Bittrex. When you create your Coinbase account, you get a digital "wallet".

You also get a digital wallet when  you set up an account at Bittrex. Once you complete that step, you can send money from one wallet to the other, and then purchase any of the other 843 cryptocurrencies from the exchange.

I am going to be putting away money on a monthly basis into my Coinbase account and loading up on Bitcoin. Then I will be able to transfer money at will to my Bittrex wallet, and for a very minimal fee I will have the ability to invest into the other cryptocurrencies.

In my next blog post, I will explain why there are so many other cryptocurrencies, and why there is a need for different types. But the first step you need to take is to buy your Bitcoin. When you buy your Bitcoins via Coinbase, you own actual currency that can be used to make purchases at over 100,000 retail services. It's not like investing in stocks. You are purchasing usable currency.

For example, you can actually buy Walmart gift cards using your Bitcoin balance and go shopping at a physical store, or buy goods and services on Amazon.com. You'd be surprised at how many local businesses in your home town are already accepting Bitcoin for purchases.

Get started with your first Bitcoin purchase so you can become accustomed to the process of using cryptocurrency. Then you will be able to move into trading currencies and create the potential for a very secure financial future.

If you have questions or suggestions, please post them in the comments section and I'll help out where I can. Get going now, and be a part of the "first movers". You don't want to have regrets 10 years down the road when you realize the massive opportunity that you missed out on to be a part of this in the initial stage.

Carlton Flowers
Crypto Coach

PS - There is RISK involved in any investment, and it applies to cryptocurrency. Do your own due diligence. This is a learning process, and I don't yet profess to be an expert. Keep in mind that with risk comes possible tremendous reward to those that are forward-thinking enough to do the proper research.

REGISTER at Coinbase now and receive $10 free

3 Ways Cryptocurrency Will Change the World

LOOK OUT WORLD, HERE COMES CRYPTO!

Time to move on to more basics on cryptocurrency. Today we'll talk about how it will change the world as we know it. But first, let's talk a little more basic stuff about why they call it "cryptocurrency".

Cryptocurrency is basically electronic money that is designed to be used safely and securely, and with privacy in mind because it is anonymous. It's predominately used online, and it uses cryptography in order to convert information on purchases, transfers, and balances into an impenetrable code.

It involves using computer science, math theory, and also computer languages to transfer cash, communications, and information over the internet in the most secure and unhackable way. Governments, regulatory agencies, and banks can't get in the middle of it because the transactions can be made completely anonymously. That's the big draw.

Enough of the new basics. Now let's talk about 3 areas where cryptocurrency will change the world in the very near future...

1. Money Transfers

The way banks transfer money from one to another is ridiculously archaic. It can take upwards of a week to complete a transaction. The system is old as dirt. Have you ever had an experience where you tried to "wire" money to a friend or family member? If you did, you'd know how awful the process is. Those days are about to be over.

Cryptocurrency can be sent to anyone with an electronic wallet (i.e. an app on your phone) in as little as 4 seconds. There's no more need to go stand in line at Western Union, and wait 24 hours for money transfers to clear. In fact, you don't even need a bank or other go-between to send cash to someone on the other side of the world. Crypto changes the entire ball game.

2. Anonymity & Shift of Power

The arrival of cryptocurrency has major implications when it comes to the potential shift of power from the governmental institutions and banks to the general population. It takes the power out of the hands of the traditional rulers and hands it over to the common people.

Bitcoin and other cryptocurrencies are transacted on the Blockchain. It's like an electronic ledger that lives on an independent network of computers on the world wide web. Banks and government institutions can't get in the middle of it, because they are not needed. Transacting business on the Blockchain without the IRS watching your every move just might be an attractive thing that could possibly catch on (sarcasm intended).

The banks can't squeeze their way in either, and might be obsoleted by this new process. If you count up the ways that banks charge you to have your own money, and how microscopic of a sliver they give back when you let them use your money, it doesn't leave much motivation to stay with the plan when there is a free and anonymous alternative in crypto-commerce.

3. Safe Money Transfer for Developing Countries

Smartphone use is exploding in Africa, in the most under-developed areas. Africa is a "goldmine" for technology growth, and the fact that smartphone use is becoming so common, it creates the perfect platform for tapping into the power of cryptocurrency.

Right now many people in Africa are using mobile phone credits as a medium of exchange for commerce. There are obvious disadvantages, like the time it takes to make transfers, and the hefty fees that are snatched out for each transaction. Fees can be as high as 20% per transaction. Cryptocurrency will level the playing field and revolutionize commerce in Africa, and it will provide a much safer platform for commerce as opposed to phone credits or storing cash.

CONCLUSION

The implications of cryptocurrency adoption throughout the world go far and beyond these three examples. I'll be adding to this list in future posts, and it will leave you no shadow of a doubt that cryptocurrency is here to stay. From what I have learned thus far, I'm convinced that this is not a passing fad. The advantages are far and beyond fiat currency, and each passing day we see proof that the trend towards crypto is just getting stronger and stronger. Watch the birdie!

Carlton Flowers
Supreme Cryptographer

The CZ Crypto Blog - Learn the Basics of Cryptocurrency Investing Along With Me!

THE JOURNEY TO CRYPTOCURRENCY MASTERY BEGINS NOW

Welcome to my mini blog site for learning about cryptocurrency! As I learn how to enter into this new age, I want you to follow along and learn with me. This will be our resource to exchange knowledge and ideas.

Cryptocurrency is the future, folks. Whether you understand it or not, it's going to be the biggest fundamental change in finance that you will see in your lifetime. Now is the opportunity for you to learn, and to benefit in order to secure your financial future.

What is cryptocurrency, exactly? It's simply a digital payment system that does not require the involvement of banks, governments, or regulatory agencies. It's just a medium of exchange. It was invented by an unknown person or group of people under the name "Satoshi Nakamoto".

It was released in the year 2009 as an open source software system that runs on a peer-to-peer network where transactions take place directly from the people involved in trading, without a bank or other intermediary.

Any time two individuals make a transaction of currency, it is verified by network nodes, and recorded in a public distributed ledger called the "blockchain". It is open for anyone to view, and every single transaction that occurs is public knowledge.

The first "cryptocurrency" was Bitcoin. Bitcoins can be traded for products, services, or traded for worldwide currencies like the US dollar. As of February of 2015, there were over 100,000 merchants and vendors in the world accepting Bitcoins as a method of payment.

Whenever a transaction is made, it is verified by thousands of "auditors" out on the node. This keeps every transaction safe, and prevents anyone from duplicating their Bitcoins or making fraudulent trades. It makes the system impossible to hack, unlike regular money that you can counterfeit.

The process of auditing Bitcoin transactions is called "mining", because auditors are rewarded with tiny amounts of Bitcoin currency for performing a service. But there is a finite amount of Bitcoin currency that will be allowed to be created, and once that's done, mining will cease. At that point, auditors will be paid by charging a small fee to verify transactions.

Bitcoins can also be bought, and just sat on, as an investment. The more people pile on and buy Bitcoins, the higher the demand becomes. That means the value of each Bitcoin rises over time. I have a friend who bought five Bitcoins back in 2013 for around $400 per coin. Each of those coins is now worth nearly $10,000. That makes it an attractive investment.

Since Bitcoin was invented, there are several other cryptocurrencies that have hit the scene such as Ethereum and Litecoin. There are probably over 100 different cryptocurrencies that are being bought and sold as of this day, and the majority of them are increasing in value.

The benefit of cryptocurrency is that it removes the banks from the equation when two individuals seek to transact business or trade. It puts the power into the hands of the people, and the banks don't make any money. That's why it represents a threat to the current monetary system of the governments in the world.

That is the most basic level explanation of what Bitcoin and cryptocurrency is, and we'll get into much more detail as time goes on. This is a good starting point, and you'll want to continue to learn so you will be able to plan for investing. And you better have a sense of urgency about it. Why?

It is due to the fact that we are in the stage of change that is called the "Early Adopters". At this stage of change, this is where innovation hits critical mass and we experience massive growth. A good example would be the arrival of the first iPhone.

You can probably remember when you first heard about the development of Apple's first smartphone, but you had no idea it would change the world. Within a few months after the first iPhone was released, we hit critical mass. Years later, the majority of everyone in the world, regardless of their socioeconomic level, carries a smartphone.

This is exactly the point we are at right now regarding cryptocurrency. If you ask your friends about it, it is possible that 9 out of 10 have heard about Bitcoin but have not had any experience buying or trading with it. That will rapidly change.

Getting on the band wagon now could mean the difference between living at your current financial level, or living in a wealthy state beyond your wildest dreams. But if you wait to enter the market along with the majority of people, you won't be able to capitalize on the explosive growth from a financial standpoint.

Carlton Flowers
The Crypto Keeper