Bitcoin and What Happens in the Aftermath of Bubbles

This article will explore 2 questions: Has bitcoin bottomed yet? And, what does the aftermath of major bubbles bursting look like and its implications for price?  

Thursday, bitcoin had a relief rally in sympathy with most other commodities as the Swiss National Bank (SNB) de-pegged the Swiss Franc from the Euro. This was a surprise move by the SNB but was necessary as being pegged to the Euro has been killing the Franc as the Euro has been sinking against a strong dollar due to Eurozone economic malaise. 

Swiss National Bank (SNB)

A previous article written on this subject can be found here. There is a lot of speculation as to why they did this now and the prevailing sentiment is twofold: the SNB expects the European Central Bank (ECB) to launch massive QE and this will further weaken the Euro so they wanted to get ahead of the curve as the SNB has had to purchase a ton of Euros to protect the Franc and their threshold has been reached.

As a result, the Swiss Franc surged and the Euro weakened, while the USD strengthened. All commodities (gold, oil, copper, silver, bitcoin etc.) also saw a sharp rise in anticipation of QE coming.

Has bitcoin bottomed yet?

The simple answer is no, not yet.  As mentioned above, bitcoin had a relief rally yesterday in due to the SNB news in combination with an extremely oversold chart. A relief rally generally occurs in a downtrend, when buyers show up and shorts cover but it is nothing more than a countertrend move and is fleeting a