Do not fall into the "To the Moon" trap!
Updated
Dear traders,
Recently, it has been a lot of hype on the internet about the "confirmation" of the bull market for bitcoin. Guess what happens when literally everyone is biased toward one outcome? Market does the opposite! Below is my view on the bitcoin price in the coming months.
First of all, the price has formed a clear upward channel where the bounce is very very likely at around $14000 - 14500. Whether it will be a weak or strong, no one knows. But one is certain, everyone will blame the market for manipulations when the drop happens.
Second, the Fib extension of the current price since the beginning of October surpassed 0.786 and on its way to 100% and possibly beyond. In that case, I do expect another push after the retracement. It is very likely to spike even to 15k if enough of retail traders will FOMO in.
In general, I expect the next half a year to be bearish which is contrary to many "predictions" by youtube gurus. The 10k is still a major psychological level and going below that will trigger many stop losses and activate the panic mode. Regarding the short-term view (2-3 weeks), I expect another push to the upside and then some negative news will throw the price off the cliff.
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GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2-3% of your account per trade
2. Look for a Risk-Reward Ratio of at least 2:1
3. Always use stop-loss
4. Do not FOMO
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so, please do not follow it if you are in doubt. DYOR!
Recently, it has been a lot of hype on the internet about the "confirmation" of the bull market for bitcoin. Guess what happens when literally everyone is biased toward one outcome? Market does the opposite! Below is my view on the bitcoin price in the coming months.
First of all, the price has formed a clear upward channel where the bounce is very very likely at around $14000 - 14500. Whether it will be a weak or strong, no one knows. But one is certain, everyone will blame the market for manipulations when the drop happens.
Second, the Fib extension of the current price since the beginning of October surpassed 0.786 and on its way to 100% and possibly beyond. In that case, I do expect another push after the retracement. It is very likely to spike even to 15k if enough of retail traders will FOMO in.
In general, I expect the next half a year to be bearish which is contrary to many "predictions" by youtube gurus. The 10k is still a major psychological level and going below that will trigger many stop losses and activate the panic mode. Regarding the short-term view (2-3 weeks), I expect another push to the upside and then some negative news will throw the price off the cliff.
=============================
GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2-3% of your account per trade
2. Look for a Risk-Reward Ratio of at least 2:1
3. Always use stop-loss
4. Do not FOMO
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so, please do not follow it if you are in doubt. DYOR!
Note
So far, we have not seen any significant drop in price yet which indicates that we might still witness a slight increase in price before the big players will partially close their longs. I expect to see a strong dump next week, maybe it will spike all the way to 12k. However, I also expect the price to settle around $12500 before a final push to the upside. Remember, that the large positions cannot be closed all at once without consequences. Otherwise this action will significantly tank the price down. Hence, those who hold large positions will try to bring the price back up to maximize the profit. Once we start to consolidate at $13500 - $14000 for 2-3 weeks or longer, it is a clear indication that the longs are slowly being closed and short positions are accumulating before the drop.
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