Bitcoin - The Mother In Law Bar
Updated
Expecting a pullback in a market is like knowing your mother in law is coming over for dinner. You prepare for it. But what you can not prepare for, is her walking through the door with her bags in hand, and says she is moving in. You know that look you give your wife? Well that is the look we have right now with Bitcoin'. This was an ugly bar by all means, and ugly just got worse while I was typing this article.
The point is this bar is an ugly bar and that is not the worst of it. Ethereum' new low, and the alt-coin market looks like she brought your three nephews to move in as well.
Lets not panic here, but this doesn't look good, at least from the surface.
I am already getting texts of silk road sells, Goldman Sachs and the always popular Tether manipulation on our chat group. Nothing but click bait. This may fuel the selloff but the selloff was already going to happen. Every selloff needs a catalyst and this was it. There are a couple concerns here with the market structure.
1) The weekly was taken out like a Mike Tyson Buster Douglas fight. This is not good.
2) We broke through every support pretty much like butter. This is not good.
What is good is the tail formation. What is not good is that there is still nearly 23 hours before it closes.
So what do we do when we missed the sell trigger? Nothing we actually put the market in time out. Trading action like this will result in whipsaw and deterioration of your portfolio. The truth is there was a solid base formation between 6200 and 6500 and we just pulled off the 6300 level forming a tail. We need to see some evidence that these buyers are still there. Not just on the 1 or 2 hour, but over a period of days. The entire market just went into time out!
There is always a trade in the market, so we opted for the USDCHF' trade instead. There are also a few stocks we are looking at for trade setups.
Regardless this does not change our long term outlook of Bitcoin' which is Bullish.
In my last TV' article I posted the weekly chart, and that has not changed, other than as mentioned above we took out the weekly low. If you have been following for any length of time, I am patient and long term. If you stack gold' and or silver' you understand what patience is. This intraday stuff is simply noise on the monthly chart. Crypos are risky and we have mentioned if you are investing in the space you must always take into account these can go to zero. It is the nature of the beast.
Eventually if the space succeeds (and even Jamie Dimon has come to the darkside) the market will move higher. Dash' is currently on our radar for a future swing trade, but we are still a couple days from Kansas!
Do not feed into the mania, if the market moves further down so be it. I'm not selling my Bitcoin' for the next 5-10 years so I would have no issue adding a little more at lower levels. Why many are looking for instant gratification, they do not realize that market corrections in general are buying opportunities. I'm not saying buy here and now, but we will definitely be looking to add on this pullback, especially if the 6k level holds.
Money has flooded to the sidelines and it either leaves the market, or comes back in the near future. Until we see some evidence of a bottom we are stepping aside.
The point is this bar is an ugly bar and that is not the worst of it. Ethereum' new low, and the alt-coin market looks like she brought your three nephews to move in as well.
Lets not panic here, but this doesn't look good, at least from the surface.
I am already getting texts of silk road sells, Goldman Sachs and the always popular Tether manipulation on our chat group. Nothing but click bait. This may fuel the selloff but the selloff was already going to happen. Every selloff needs a catalyst and this was it. There are a couple concerns here with the market structure.
1) The weekly was taken out like a Mike Tyson Buster Douglas fight. This is not good.
2) We broke through every support pretty much like butter. This is not good.
What is good is the tail formation. What is not good is that there is still nearly 23 hours before it closes.
So what do we do when we missed the sell trigger? Nothing we actually put the market in time out. Trading action like this will result in whipsaw and deterioration of your portfolio. The truth is there was a solid base formation between 6200 and 6500 and we just pulled off the 6300 level forming a tail. We need to see some evidence that these buyers are still there. Not just on the 1 or 2 hour, but over a period of days. The entire market just went into time out!
There is always a trade in the market, so we opted for the USDCHF' trade instead. There are also a few stocks we are looking at for trade setups.
Regardless this does not change our long term outlook of Bitcoin' which is Bullish.
In my last TV' article I posted the weekly chart, and that has not changed, other than as mentioned above we took out the weekly low. If you have been following for any length of time, I am patient and long term. If you stack gold' and or silver' you understand what patience is. This intraday stuff is simply noise on the monthly chart. Crypos are risky and we have mentioned if you are investing in the space you must always take into account these can go to zero. It is the nature of the beast.
Eventually if the space succeeds (and even Jamie Dimon has come to the darkside) the market will move higher. Dash' is currently on our radar for a future swing trade, but we are still a couple days from Kansas!
Do not feed into the mania, if the market moves further down so be it. I'm not selling my Bitcoin' for the next 5-10 years so I would have no issue adding a little more at lower levels. Why many are looking for instant gratification, they do not realize that market corrections in general are buying opportunities. I'm not saying buy here and now, but we will definitely be looking to add on this pullback, especially if the 6k level holds.
Money has flooded to the sidelines and it either leaves the market, or comes back in the near future. Until we see some evidence of a bottom we are stepping aside.
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