23
Jan
20

Passive income flow, the ultimate joy – Bitcoin Technical Analysis

It is clear that the holy grail of making money is passive income flow. Making money while you sleep should be the goal of any business venture. The quality of that sleep is determined by risk. If you have figured out a passive income flow model that lets you sleep like a baby you are in the green zone. Trading a volatile market like the crypto space is already an edge. Many have heard of it, but not everybody participates just yet. Finding within a relatively new market another edge/niche, might just be that green zone model. Cloud mining is one of those rare niches. Like, for example, options trading in the popular markets, where most stay away since they are overwhelmed by rules and a confusion of how the game is played, mining is a gem. In mining crypto currencies, one also deals with various factors that are not as obviously to be determined at first glance. Reducing risk by eliminating complexity can lead to passive income flow, the ultimate joy.

 

The business model of cloud mining services, such as Genesis Mining, is exactly that: eliminating complexity for the user.

 

Cloud mining demystified:

 

Basically, you get to mine your own Bitcoin by getting access to computers in a data center via the cloud. In essence it is three factors that drive profitability of a mining contract:

 

  • price of electricity
  • price of bitcoin
  • network congestion (= ”how easy to grab a hash”)
  •  

    All the complex details, like picking the right hardware, setting it up, and the daily maintenance is done for you by the cloud mining service. One shouldn’t shy away from opportunity, like a perceived low-price zone in Bitcoin to participate in alternative ways of creating attractive percentage returns.

     

    Market niches that are less attractive and less hyped via news or include harder to understand rules and regulations or simply longer time frames are often the most profitable passive income flow models in regard to risk. They should be part of a wealth preserving portfolio.

     

    Bitcoin Monthly chart – Opportunity in the making:

     

     

    We might be just at that starting point of this low risk price zone for the next larger time frame turning point in Bitcoin. In the monthly chart above, one can see the possible bar take out of the December monthly candle. Risk is in check. We said “possible”, since the candle of January has not closed yet. Price breaking drastically below the December low of US$6,435 has a low probability.

     

    Bitcoin Weekly chart – Supply/demand second layer support zone:

     

     

    The weekly chart shows even clearer the second layer support zone right under recent lows. No one knows the future, but it seems worthwhile to consider long term investments within the early first quarter of this year. Looking for confirmation signs like volume returning to the market would be a timing tool to consider. As usual you will find real time entries and exit in the telegram channel of Midas Touch Consulting. Principle strategy employment applies to all markets. Consequently to cloud mining just as well (see the quad strategy for money management).

     

    Bitcoin Daily chart – Inverse head and shoulders formation confirmed:

     

     

    Looking prismatically through all time frames is part of our confluence system. It allows for stacking of odds and small risk entry zone timing. This, as well as an alignment of edges through various factors like price, time, and volume. Watching the markets here closely and acting when warranted requires clarity. Be prepared on how much and how to allocate money for a passive income model.

     

    Passive income flow, the ultimate joy

     

    Bitcoin markets trade in relationship to their historical numbers at a fair to low price. We find consideration of looking into reputable mining contracts to be an attractive field at this time. Contracts being priced in accordance to multiple factors in relationship to the Bitcoin price itself find at this moment in time a worthwhile mentioning and exploring.

     

    All charts timely posted in the telegram channel of Midas Touch Consulting.
    If you like to get regular updates on our gold model, precious metals and cryptocurrencies you can subscribe to our free newsletter.

    Korbinian Koller
    Technical Analyst