Today, Bitcoin made a big squeeze as a result of which perhaps all short positions on Bitfinex and other exchanges with margin trading were liquidated.
The current action certainly represents a bull sign in the medium term (months). Even if Bitcoin is destined to go lower (which I strongly doubt), this will not happen today or this month.
Reasons
To understand the reason for such a deep correction in Fibonacci levels, it is necessary to understand how the market reacts to such actions. After a big impulse, all the media on cryptocurrency wrote about it. And at that moment the distribution wave (correction) began. At first it looks like a normal correction (symmetrical triangle with a tight range of price action), but then the price begins to fall. Oh my God! This is a bull trap, we are all caught! And people are starting to sell so desirable bitcoins a couple of hours ago.
Gain = Pain
Do you think you just expect a profit of xx% per day from the market while ordinary Forex pairs can only give it a few months (well, or weeks, ok). And the market should give you this just like that?
Profit in these markets is almost always associated with pain. The pain of holding a position. If you were so sure a few hours ago that it would go up, are your assumptions really so weak that you sell them immediately and at a loss of 10% (and in some alts 20%).
There is no magic moon
Before any major run, the market swings for weeks or days. He shakes you to check your hands. Are your hands weak? Then this market is not for you.
How to understand that this market has surrendered and will fall to the hell?
Some of you will be asked. Well, it's easy. POC (highest volume level) is at 6420. If the day closes below this level, you will have a reason to worry. In the meantime, an healthy level for the current correction is 6580 (possibly 6650, ok).
The current action certainly represents a bull sign in the medium term (months). Even if Bitcoin is destined to go lower (which I strongly doubt), this will not happen today or this month.
Reasons
To understand the reason for such a deep correction in Fibonacci levels, it is necessary to understand how the market reacts to such actions. After a big impulse, all the media on cryptocurrency wrote about it. And at that moment the distribution wave (correction) began. At first it looks like a normal correction (symmetrical triangle with a tight range of price action), but then the price begins to fall. Oh my God! This is a bull trap, we are all caught! And people are starting to sell so desirable bitcoins a couple of hours ago.
Gain = Pain
Do you think you just expect a profit of xx% per day from the market while ordinary Forex pairs can only give it a few months (well, or weeks, ok). And the market should give you this just like that?
Profit in these markets is almost always associated with pain. The pain of holding a position. If you were so sure a few hours ago that it would go up, are your assumptions really so weak that you sell them immediately and at a loss of 10% (and in some alts 20%).
There is no magic moon
Before any major run, the market swings for weeks or days. He shakes you to check your hands. Are your hands weak? Then this market is not for you.
How to understand that this market has surrendered and will fall to the hell?
Some of you will be asked. Well, it's easy. POC (highest volume level) is at 6420. If the day closes below this level, you will have a reason to worry. In the meantime, an healthy level for the current correction is 6580 (possibly 6650, ok).
Note
Now going B-wave. Just show updated support targets.Note
Moving in triangleNote
Current formed triangle end in few hours. Also we have 1H MA crossing.I publish support projection of channel and levels IF we going down.
Remember that triangle breakout minimum at self height.
Note
Some one of you it can be interesting:bitcoinist.com/cme-bitcoin-futures-olume-increased-q3/
(not promotion link)
Note
Guys, most people scared now. But all market near strong support. Big players need to have a wall of buy orders to create huge dump. Because of this - its not time to waiting big breakout down.
More probably we will have a small run around 10-15% for many top alts in coming days.
Note
Note
If you are interested in SEC progres - memorandum link about meeting SEC with VanEck, SolidX and CBOEsec.gov/comments/sr-cboebzx-2018-040/srcboebzx2018040-4507040-175984.pdf
Note
Just update for current structureNote
Guys, we are still in triangle.Note
The price has almost reached its support in touching two lines at once - the lower support of the triangle and the upper bearish trend line.Area 6300 is key to Tether’s support exchanges.
If the price consolidates below this area - most likely we are expected to dive under 6000. But the more likely scenario we will play is swing trading from the level of 6300 to the beginning and the middle of 7k.
Why fall on the exchanges with Tether pair more than on the fiat dollar exchanges?
If you have not noticed, the price fluctuations at Coinbase are significantly lower than those at Bitfinex and Binance. The reason is that Tether traded with a big discount of 3 to 6% depending on the exchange.
Probably, in order to eliminate this hole in the liquidity of the exchange, they were forced to lower the rate to the closest possible value to Coinbase. In this way, they could restore the balance of Tether and the US dollar at least approximately.
If you are scared and don’t know what to do (there’s probably someone like that here). The answer is simple - place orders for sale at about 7k and do not look at the charts and prices for the next couple of weeks.
Guys, it's just a matter of time when everything breaks out. On the 15 minute chart, this looks terrible for some. But open charts with a daily timeframe. You will see how tight the price range is now. And in fact, now is the safest time for investments (not trading) in cryptocurrency.
It’s likely that in November we’ll all just see a $1000 race and then we’ll receive a notification from the news site by mail that the SEC has allowed ETF, physical futures or something else has happened. And all the space will flash. Now is not exactly the time to sell, as in 19k for a purchase.
Note
Another boring update for this market.* Price moves very slowly near BIG support do you think its signs of strength or weak?
* When price moves slowly on highs often it mean the coming falling.
* When price moves slowly on deeps what it mean?
Anyway if I were on the short side of market - I will feeling uncomfortable now.
This is mainly crowd tactic - buy on 7000 when it strong and sell on 6300 when it weak. Few cycles like this and your bags loss 50% of money.
"Should I sell or buy now?" lol
Note
Bitcoin create higher low on this week. And its good sign beacause weak market not create lower high near support - weak market sell off quickly this support. We can see few days on this levels between 2 important trend lines. And after this we can see next wave up.Note
BTC reach level that need to hold and do not close the day below this level.Note
Now Coinbase before important support.Note
Well guys, it looks like market decide to take liquidity.Its good. I dont thinnk that its bad. Because liquidity important for starting any big movement up.
Note
Coinbase weekly chart support.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.