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Retail Traders Are Waking Up | Here’s How to Spot the SignsWhy Are Our Parents Texting Us About Bitcoin? It’s Getting Weird Thanks to crypto,now I know my entire extended family and even my ancestors! Some of them hadn’t spoken to me in a thousand years, but now they’re calling me “Bruh” (And no, I’m not a vampire, by the way!) Here’s why I think a retail fueled wave might be about to hit the crypto market 1/ A spike in Google searches for "crypto" 2/ Coinbase App Store rankings The Coinbase app just shot up from #155 to #18 in two days 3/ Dogecoin and Squirrel on the rise Retail traders have a soft spot for Doge , Cardano and memecoins. Guess which top 10 tokens surged the most in the last week? bunch of retail traders who’ve held CRYPTOCAP:DOGE and CRYPTOCAP:ADA since the last bull run are probably getting alerts that their investments are bouncing back.(That’s one way to grab their attention) 4/ Bitcoin featured on Bloomberg's front page Mainstream news = mainstream visibility = more pump = more lambo! 5/ Texts from our parents ( Are you winning son? ) The unique skill of being both endearing and critical at once a true dad specialty 6/ Ronald McDonald has joined the chat… McDonald's just teased a new collaboration with Doodles (yes, the NFT project). It kicked off last week…Now, any one of these signs might not mean much alone But taken together, they start to tell a different story. Falling air pressure, strengthening winds, darkening skies… it looks like a retail storm might be on the horizon..Brace yourselves! The good news? This time might not be different. Earlier in the year, there was concern about a potential “left translated cycle.” (Translation: crypto prices rising faster than expected). At first, that sounds great! (Who wouldn’t want a quicker path to wealth?) But the catch is, the shorter the window for prices to peak, the harder it is to time safely (you’d have days instead of weeks or months to sell near the top) When Bitcoin reached all time highs ahead of the halving in March (a first), many traders started feeling “left-translated” jitters. If we stay on this track and hit the same average returns as the past three halving years, we could be looking at a ~$ 126k Bitcoin by year’s end! Here’s hoping this time really isn’t different! BTC just hit a new ATH again!! STOP
Education
by moonypto
Elementary Bitcoin in its entirety for beginnersUnlike all kinds of cryptocurrencies, the issue of Bitcoin is limited by the condition of a regular reduction in the size of the mining reward. Naturally, the American dollar will always be issued without any special restrictions. This allows you to make a basic calculation: “infinity” divided by “21 million” = “infinity”. That is, theoretically, in the infinite future, Bitcoin can cost as much as you like; based on general data, you can already calculate the nearest maximum target of $120k at the end of 2025. Of course people won't spend all their dollars on Bitcoin because they have other needs to survive. People will buy and sell Bitcoin to achieve their budget goals. Therefore, the price will not rise every day. Looking at the figure, you can see three symbolic exponents (blue at the bottom, red at the top and orange in the middle) the struggle between buyers and sellers unfolds. But this is not a fact that the price will reach them, since the real exponential median is extended into eternity, or at least for the next hundred years until all Bitcoin is mined. The most likely upward trend will fluctuate around a straight white line. I think the price will charge below this line and shoot exponentially much higher again and again as mankind's speculative sentiment never runs out. Therefore, in the near future, since the price has not reached its nearest maximum immediately, a break is needed to recharge. Anything can happen at once, but most likely it will drop below the previously mentioned orange exponential and below the white straight line to collect at least part of the liquidity between $28k-33k and reverse fast back to its nearest target at $120k. I believe this downward and upward movement will occur before the end of 2025. However, from my own experience, I can note that my scenarios are implemented much faster because we are not given time, we create it ourselves. Therefore, just stay in touch and watch the unfold of events vertically if you are not in a hurry. =] I still provide brief comments as the story progresses from that “Watchlist, details and news” section in the upper right corner of the screen on the stationary monitor. Best wishes.
BITSTAMP:BTCUSDEducation
by tradephenomena
Navigating Sympathy Plays: A Guide to Trading BITCOIN & COINBASE** Introduction ** Sympathy trading, a strategic approach rooted in both technical and fundamental analysis, capitalizes on correlated movements between assets to uncover profitable opportunities. In this article, we delve into the nuanced realm of sympathy trading using Bitcoin (BTCUSD) and Coinbase Global Inc. (COIN) as case studies, exploring how a blend of technical and fundamental analysis can enhance trading strategies. ** Understanding Sympathy Trading ** Sympathy trading hinges on discerning and exploiting the symbiotic relationship between correlated assets. It involves analyzing both technical indicators and fundamental factors to identify potential entry and exit points, as well as underlying drivers influencing price movements. ** BTCUSD and COIN: A Sympathetic Relationship ** BTCUSD and COIN exemplify a compelling case study in sympathy trading within the cryptocurrency domain. Bitcoin's price dynamics often exert a significant influence on Coinbase's stock value, reflecting the exchange's dependency on Bitcoin's performance and trading volumes. Technical Analysis Insights: Technical analysis provides crucial insights into price trends, momentum, and support/resistance levels. Key technical indicators for trading BTCUSD and COIN include: 1.Moving Averages: Analyzing moving average crossovers and trends helps identify potential entry or exit points. Golden crosses (short-term moving average crossing above long-term moving average) or death crosses (opposite) can signal trend reversals. 2.Volume Analysis:  Monitoring trading volumes in both BTCUSD and COIN can confirm price movements and signal changes in market sentiment. An increase in volume accompanying price movements suggests stronger market conviction. 3.Chart Patterns:  Identifying chart patterns such as triangles, flags, and head and shoulders formations can provide insights into potential price reversals or continuation patterns, guiding trading decisions. Fundamental Analysis Insights: Fundamental analysis delves into underlying factors driving asset valuations and market sentiment. Key fundamental factors influencing BTCUSD and COIN include: 1.Regulatory Developments:  Changes in regulatory frameworks governing cryptocurrencies can impact investor sentiment and trading activity. Positive regulatory developments may boost confidence in BTCUSD and COIN, while regulatory uncertainties could lead to volatility. 2.User Adoption and Trading Volumes:  Monitoring user adoption rates and trading volumes on Coinbase's platform can provide insights into the exchange's revenue prospects and growth trajectory. Increased user activity often correlates with higher revenues for the exchange. 3.Market Sentiment and News Catalysts:  Market sentiment surrounding Bitcoin, such as institutional adoption, macroeconomic factors, or geopolitical events, can influence both BTCUSD and COIN prices. News catalysts, such as product launches, partnerships, or earnings reports from Coinbase, can drive short-term price movements. ** Crafting Sympathy Strategies: ** Sympathy trading strategies integrating technical and fundamental analysis may involve: 1.Confirmation of Technical Signals:  Confirming technical signals with fundamental catalysts can strengthen trading convictions. For example, if a bullish technical pattern emerges in BTCUSD, traders may look for positive fundamental catalysts supporting the uptrend in COIN. 2.Event-Based Trading: Leveraging fundamental analysis to anticipate market-moving events, traders may position themselves ahead of key announcements or developments. For instance, if positive regulatory news is expected for cryptocurrencies, traders may preemptively buy COIN in anticipation of increased trading activity. ** Risk Management Considerations: ** Effective risk management is paramount in sympathy trading to mitigate potential losses: 1.Position Sizing:  Determine appropriate position sizes based on risk tolerance, account capital, and trade conviction. Avoid overexposure to a single trade and diversify across multiple assets to spread risk. 2.Stop-Loss Orders:  Implement stop-loss orders to limit potential losses and protect capital. Place stop-loss levels based on technical levels, volatility considerations, or predetermined risk-reward ratios. ** Case study in action ** Let's look at the charts, both on the 1W time-frame in order to catch and get an understanding of the bigger trends and see if the theory is applied on the price action. Bitcoin has provided 5 excellent Sympathy Play signals for Coinbase in the last 2 years. Starting with a Bear Flag that was rejected on its 1W MA50 (blue trend-line), Bitcoin initiated a huge decline on Coinbase (red shape), proportionally much stronger that its own. Then as its was attempting to find a market bottom, it provided 2 recovery signals that gave a proportionally bigger rise on Coinbase. Then a BTC Bull Flag again turned into a proportionally bigger rise on Coinbase with the last signal coming on October 2023. As you can see during this significantly sample, Bitcoin tends to provide strong early buy/ sell signals on Coinbase. It is worth noting that even though Coinbase is a stock, it follows Bitcoin's price movements more closely than the S&P500 stock index, which we have illustrated on the right chart by the grey trend-line. As you can see there have been numerous occasions where Coinbase failed to follow a big stock market rally and instead was tied to BTC with the most notable examples being recently in January 2024, March 2023 and October 2022. ** A few things to consider that distinguish Bitcoin from Coinbase: ** Market Factors:  Bitcoin's price is influenced by various market factors such as supply and demand dynamics, investor sentiment, macroeconomic trends, regulatory developments, and technological advancements. Coinbase's stock price, on the other hand, is influenced by factors specific to the company, including financial performance, earnings reports, regulatory compliance, competition, and market sentiment towards the cryptocurrency industry. Liquidity and Trading Volume:  Bitcoin, being the largest and most well-known cryptocurrency, typically exhibits higher liquidity and trading volume compared to Coinbase's stock. As a result, Bitcoin may experience more significant price movements and volatility compared to COIN, which could impact their respective charts differently. Correlation vs. Causation:  While Bitcoin's price movements may influence sentiment towards Coinbase and vice versa, correlation does not necessarily imply causation. While there may be periods where BTC and COIN prices move in tandem due to shared market sentiment or external factors, they are ultimately distinct assets with their own fundamental drivers. Market Participants:  Bitcoin is traded on cryptocurrency exchanges by a diverse range of market participants, including retail investors, institutional investors, miners, and traders. Coinbase's stock, on the other hand, is traded on traditional stock exchanges and may attract a different set of investors, including institutional investors, hedge funds, and retail traders. ** Conclusion: ** Sympathy trading using BTCUSD and COIN as case studies demonstrates the synergy between technical and fundamental analysis in identifying trading opportunities and managing risk. By integrating insights from both disciplines, traders can enhance their trading strategies, navigate market dynamics with confidence, and strive for consistent profitability in the dynamic cryptocurrency market. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
Editors' picks
CRYPTO:BTCUSDEducation
by TradingShot
5
Driving Forces Behind Cryptocurrencies' VolatilityIn the ever-evolving realm of modern finance, the emergence of cryptocurrencies has catalyzed a seismic shift, captivating the imagination of investors and traders alike. Since the inception of Bitcoin in 2009, the cryptocurrency market has experienced an unprecedented surge, leading to a proliferation of digital assets, each with its own unique characteristics and potential applications. However, amid the exhilarating highs and gut-wrenching lows, the cryptocurrency market's intrinsic volatility has left many pondering the enigmatic forces that propel its wild fluctuations. This article embarks on a comprehensive exploration of the fundamental drivers that propel the volatile universe of cryptocurrencies, providing an in-depth analysis of the intricate interplay between a myriad of elements that influence prices and sentiment. From the far-reaching impact of macroeconomic factors and regulatory dynamics to the revolutionary power of technological advancements and the sway of market sentiment, a complex tapestry of influences collectively shapes the turbulent journey of digital currencies. As the global financial ecosystem grapples with the ongoing evolution of this nascent asset class, acquiring an intimate understanding of these pivotal factors becomes a cornerstone for investors, traders, and enthusiasts navigating this dynamic landscape. Diving into the Cryptocurrency Mosaic Cryptocurrencies have transcended their origin with Bitcoin to establish a vibrant and diverse ecosystem of digital assets. Each cryptocurrency possesses a distinct set of attributes, use cases, and underlying technologies, intricately weaving into the intricate fabric of the market. Broadly categorized, cryptocurrencies fall into two primary groups: coins and tokens. Coins like Bitcoin, Litecoin, and Bitcoin Cash are engineered to facilitate transactions and serve as alternatives to conventional currencies. In contrast, crypto tokens are constructed atop existing blockchain platforms, such as Ethereum, fulfilling functions like governance and ecosystem transactions. Furthermore, the consensus mechanisms employed by cryptocurrencies contribute to their diversity. The proof-of-work (PoW) mechanism, utilized by Bitcoin and others, relies on mining for transaction validation. Conversely, the proof-of-stake (PoS) mechanism, exemplified by Ethereum and Cosmos, leverages validators to confirm transactions, enhancing energy efficiency and scalability. Decrypting Cryptocurrency Volatility Volatility is an intrinsic characteristic of cryptocurrencies, fueled by a confluence of influential factors: Limited Liquidity: With trading volumes and market capitalization often lower than traditional assets, even modest buy or sell orders can generate substantial price fluctuations. Speculative Nature: Cryptocurrencies are frequently viewed as speculative instruments, leading to price movements driven by market sentiment, hype, and speculative behavior, rather than fundamental analysis. Regulatory Ambiguity: As a relatively nascent and lightly regulated market, regulatory developments can trigger abrupt price shifts as investors respond to changes or uncertainties in the legal landscape. Sentiment Swings: Market sentiment, shaped by events like security breaches or regulatory announcements, can exert considerable influence on cryptocurrency prices. Manipulation Vulnerability: Due to limited oversight and liquidity in certain markets, cryptocurrencies are susceptible to manipulation by sizable holders, leading to price distortions. Technological Factors: Technical vulnerabilities or glitches can prompt swift price fluctuations as investors react to perceived risks associated with the underlying technology. Adoption and Utilization: The practical adoption and use cases of cryptocurrencies significantly influence their value. Currencies with tangible utility and real-world applications tend to garner heightened interest and market support. Supply and Demand: The fundamental economics of supply and demand guide cryptocurrency prices. Scarce supply coupled with growing demand can propel prices upward. Macroeconomic Influences: Broader macroeconomic factors, encompassing inflation, interest rates, and geopolitical events, can channel investor attention toward cryptocurrencies as alternative investment vehicles or stores of value. Influential Figures' Statements: Public endorsements or criticisms from influential figures exert considerable impact on cryptocurrency prices, shaping market perceptions and behavior. Conclusion As cryptocurrencies reshape the financial landscape, delving into the driving forces behind their volatility is essential for navigating this dynamic market. From the inception of Bitcoin to the kaleidoscope of digital assets that now flourish, the cryptocurrency market is characterized by its rollercoaster-like price oscillations. This article has undertaken a comprehensive exploration of the key factors influencing this volatile realm. Regulatory shifts, market sentiment, technological advancements, hacking incidents, and supply-demand dynamics all converge to define cryptocurrency movements. Understanding these multifaceted influences empowers investors, traders, and enthusiasts to navigate the unpredictability of the crypto landscape with poise and informed decision-making. While cryptocurrencies promise transformation, their journey is marked by rapid evolution and maturation. As the landscape continues to evolve, maintaining vigilance and adaptability remains pivotal. Regardless of your vantage point, comprehending these factors empowers you to seize opportunities and surmount challenges in the captivating realm of digital assets.
Education
by FOREXN1
3
Wyckoff Accumulation & DistributionThe Wyckoff Method, pioneered by Richard Wyckoff, a prominent figure in the early 1900s stock market, remains a powerful technical analysis-based trading approach. This article delves into the intricacies of the Wyckoff Accumulation and Distribution phases, fundamental to this method. Who was Richard Wyckoff? Richard Wyckoff, a highly successful American stock market investor of his time, stands as a pioneer in technical analysis. He transitioned from accumulating personal wealth to addressing what he perceived as market injustices, devising the Wyckoff Method to empower traders against market manipulation. Through various platforms like his own Magazine of Wall Street and Stock Market Technique, Wyckoff disseminated his insights. The Wyckoff Method: Wyckoff proposed that markets undergo distinct phases: Accumulation and Distribution. These phases guide traders on when to accumulate or distribute their positions, forming the core of the method. The Wyckoff Accumulation Phase: This phase materializes as a sideways, range-bound period subsequent to a prolonged downtrend. During this stage, significant players seek to establish positions without causing dramatic price drops. The accumulation phase comprises six integral components, each serving a vital role: Preliminary Support (PS): As signs of the downtrend ending emerge, high volume and wider spreads surface. Buyers initiate interest, suggesting the end of selling dominance. Selling Climax (SC): Characterized by intense selling pressure and panic selling, this phase represents a sharp price decline. Often, price closes well above the lowest point. Automatic Rally (AR): Late sellers experience a reversal, driven by short sellers covering positions. This phase sets the upper range limit for subsequent consolidation. Secondary Test (ST): Controlled retesting of lows with minimal volume increase indicates potential reversal. Spring: A deceptive move resembling a downtrend resumption, designed to deceive and shakeout participants. Last Point of Support, Back Up, and Sign of Strength (LPS, BU, SOS): Clear shifts in price action mark the transition into the range's start. A rapid, one-sided move signifies buyer control, often following the spring. Wyckoff Distribution Cycle: Following Accumulation, the Wyckoff Distribution phase unfolds. This cycle consists of five phases: Preliminary Supply (PSY): Dominant traders initiate selling after a notable price rise, leading to increased trading volume. Buying Climax (BC): Retail traders enter positions, driving further price increase. Dominant traders capitalize on premium prices to sell. Automatic Reaction (AR): The end of the BC phase brings a price drop due to decreased buying. High supply causes a decline to the AR level. Secondary Test (ST): Price retests the BC range, assessing supply and demand balance. Sign of Weakness, Last Point of Supply, Upthrust After Distribution (SOW, LPSY, UTAD): SOW signals price weakness, LPSY tests support, and UTAD might occur near cycle's end, pushing the upper boundary. Wyckoff Reaccumulation and Redistribution Cycles: Reaccumulation occurs during uptrends, as dominant traders accumulate shares during price pauses. Redistribution, during downtrends, begins with sharp price rallies as short sellers capitalize. Dominant traders strategically enter positions during these rallies. Wyckoff's Foundational Concepts: Law of Supply and Demand: Prices rise when demand is high and supply is low. Prices fall when supply is high and demand is low. Balanced supply and demand lead to stable prices. Law of Cause and Effect: Price changes are driven by specific underlying factors. Price rises result from accumulation phases, while drops arise from distribution phases. Law of Effort vs. Result: Trading volume should match price movement. Deviations signal potential shifts in market sentiment or upcoming opportunities. The Wyckoff Method is relevant to all markets, including cryptocurrencies like Bitcoin, where supply and demand play a crucial role in influencing price movements.
CRYPTOCAP:TOTALEducation
by Vestinda
1
Andrews' Pitchforks are FunHere's an example of a pitchfork drawn on the 2 weekly BNC:BLX chart, measured from the March 2020 low to the Nov 2021 high and completed at the Nov 2022 low, and then extended in direction and levels (up to 9 levels can be added). The chart above makes for a solid example of how pitchforks can be used to derive a trend or channel and find solid support and resistance levels within it. They are also just fun to work with! There are several types of pitchforks which can be tested until you've found one that works best for your chart. They are called Andrews' Pitchforks because they were originally developed by Alan Andrews, with several derivatives created by modifying calculation for the placement of the pitchfork's handle (the slope of its median line): Normal Pitchfork - Andrews' original pitchfork tool. Schiff Pitchfork - moves start of the handle line halfway to the base of the channel. Modified Schiff Pitchfork - handle start is adjusted by a distance equal to half the difference between price values of its first two points (first low and high, or first high and low) of three. Inside Pitchfork - handle adjusted to half of the vertical & half of the horizontal distance between the first two points of three. In the example above, I chose a Modified Schiff Pitchfork , and then identified 3 points of consecutive highs and lows. In this case: low -> high -> low. You can choose to do the opposite of this and start from high -> low -> high, typically your first point should represent the beginning of a new trend. Play around with trying this in different timeframes, and also try editing / adding / removing levels. You can try basic levels at increments of 25% or by utilizing classic Fibonacci levels (or both, as shown above). Pitchforks are a type of Fibonacci tool, so I like using classic Fib levels. You could just use the Fibonacci Channel tool and get a similar result. But, the nice thing about utilizing a pitchfork is that it can help you identify a channel that may not be immediately obvious. Here is another example of using a Modified Schiff Pitchfork to derive trends on a popular altcoin, BINANCE:HBARUSD : Thanks for reading, I hope this was helpful to you. I learned more about pitchforks myself while working on this, and encourage others to do the same!
BNC:BLXEducation
by dudebruhwhoa
Get ahead of the Game of Crypto with Dow TheoryWelcome to @TradingView , this is @Vestinda! We're excited to share with you our insights on the Dow Jones Theory and how it can benefit cryptocurrency traders. Dow Theory, also known as Dow Jones Theory, is a trading strategy developed by Charles Dow in the late 1800s. Charles Dow did not write any books during his lifetime, but he did co-found The Wall Street Journal and the Dow Jones & Company. He also wrote many editorials for The Wall Street Journal. Here is a quote from one of his editorials that is particularly insightful: "The successful investor is usually an individual who is inherently interested in business problems." Dow theory continues to dominate and is regarded as one of the most sophisticated contemporary studies on technical analysis even after 100 years. What exactly is Dow Theory? Charles H. Dow compared the stock market to the tides of the ocean in the Wall Street Journal on January 31, 1901. "A person watching the tide come in and wanting to know the exact location of the high tide places a stick in the sand at the points reached by the incoming waves until the stick reaches a position where the waves do not come up to it and finally recedes enough to show that the tide has turned." This method is effective for observing and predicting the flood tide of the stock market." Dow believed that the current state of the stock market could be used to analyse the current state of the economy. The stock market can provide valuable measures for understanding the reasons for high and low trends in the economy or individual stocks. How Does the Dow Theory Work? The Dow Theory is based on several fundamental tenets, which are outlined below: 1. The Averages Reflect Everything: The market price takes into account every known or unknown factor that may impact both supply and demand. According to this observation, the market reflects all available information, even information that is not in the public domain. However, natural disasters such as droughts, cyclones, floods, or earthquakes cannot be considered. Major Geopolitical Events are Already Priced In: All significant geopolitical events, trade wars, domestic policies, elections, GDP growth, changes in interest rates, earning projections, or expectations are already priced in the market. Unexpected Events Affect Short-Term Trends: While unexpected events may occur, they usually only affect short-term trends, and the primary trend remains unaffected. Overall, the Dow Theory emphasises the importance of analysing the primary trend of the market and understanding that all available information is already reflected in the market price. 2. The Market Has Three Trends: The primary trend: It can be as long as one year to several years and is the ‘main movement’ of the market. These movements are typically referred to as bull and bear markets. This primary uptrend is called as bullish on the other hand primary downtrend can be considered as bearish trends. The reality of the situation is that nobody knows where and when the primary uptrend or downtrend will end. As you can see in the image above when a stock is moving in primary uptrend it makes new high followed by few lows not lower than the previous lows. Similarly the same patterns follows when it is in primary downtrend. The objective of Dow Theory is to utilize what we do know, not to make chaotic guess about what we don’t know. Through a set of guidelines from Dow Theory one can measure to identify the primary trend and stay with it. The intermediate trend or secondary trend: This trend can last between 3 weeks to several months. Secondary movements are reactionary in nature, think of them as corrections during bull market, or rallies & recoveries in the bear market. In a bull market, a secondary trend is considered a correction. In a bear market, secondary trend are called reaction rallies. So suppose if a stock during its primary uptrend made a high, it will retrace back to some points to make a low (known as intermediate trend or correction). Likewise during an primary downtrend, a stock can make a high after falling for several months or years(known as bear market rallies). The minor trend or daily fluctuations: This trend is least reliable which can be lasting from several days to few hours. Dow theory suggests not to put much attention to these trends. As a Long-term investor it is just the part of corrections in secondary uptrend or downtrend rally. This are just daily fluctuations happening in market on day to day basis. It constitutes of noise in market and perhaps be subject to manipulation. Out of the three trends mentioned only primary and secondary trends are trustworthy. However, the study of daily price action can add valuable insight, if you look in context of the larger picture. So when you are looking for daily price action of several days, or weeks try to evaluate bigger structure getting formed. By putting enough attention one can certainly benefit in short term rallies. A few pieces of a structure are meaningless, yet at the same time, they are essential to complete the entire picture. 3.Major Trends Have Three Phases: Dow significantly paid attention to the primary trends (major) in which he spotted three phases. These are Accumulation phase, Public participation phase and Distribution phase. These phases are cyclic in nature and repeats over the time. A) Accumulation phase: This phase occurs when the market is in bearish trend, sentiments are negative with no hope for any upcoming uptrend. For example as we saw in Indian share market a steep low in mid cap stocks, making new lows every other day. Most of the investors see them stay in this trend for unknown time period. However, this is the time when big investors, huge fund houses, institutional investors start accumulating them gradually. This is known as smart money keeping their view for long term investment. Although you would see sellers in market still selling, they find the buyers easily. B) Public participation phase: At this phase the market have already absorbed the negativity with ‘smart money’ getting invested. This is the second stage of a primary bull market and is usually sees the largest advance in prices. During this phase majority of public(retailers) also thinks to join in as the price is rapidly advancing. However most of them are left behind due to speed in rallies as well as the averages start heading higher. If you are also a trader or investor you might have this experience and a regret of not able to participate with rally. It is a period followed by improved business conditions and increased valuations in stocks. C) Distribution phase: The third stage is the excess phase which eventually be turned to distribution phase. During the third and final stage, the public (retailers) gets fully involved in the market, as they get mesmerized by the bull market rally. Some of them who felt left will still try to look for valuations and want to be part of the rally. But this is the time when ‘smart money’ starts liquidating shares on every high. Whereas public will try to buy at this level absorbing all liquidating (sell-off) volumes made by big investors. On contrary in the distribution phase, whenever the prices attempt to go higher, the smart money off loads their holdings. This is the beginning of bear market, where sentiments will start turning negative, you will see more and more companies filing bankruptcy, change in economic growth etc. During bear market the level of frustration rises among retail investors as they start loosing all hopes. 4.The Averages Must Confirm Each Other: Dow used to say that unless both Industrial and Rail(transportation) Averages exceed a previous peak, there is no confirmation or continuation of a bull market. Both the averages did not have to move simultaneously, but the quicker one followed another – the stronger the confirmation. To put it differently, observe the image above, as you can see both the averages are in bull market, trending upward from Point A to C. 5. Volume Must Confirm the Trend: Volume is a tool to know how many shares have been bought and sold in a given period of time. It helps in analysing the trends and patterns. Now according to Dow theory, a stock must be in uptrend with high volume and low in corrections. Volumes may not be an attractive piece of information but you should try to combine the volume data with resistance and support levels to get a clear picture. 6. Trend Is expected to Be Continued Until Definite Signals of Its Reversal: Quite similar to Newton’s first law of motion which states that an object will remain at rest or in uniform motion in a straight line unless acted upon by an external force. In simple words an object will remain in their state of motion unless a external force acts to change the motion. Likewise, the market will continue to move in a primary direction until a force, such as a change in business conditions, is strong enough to change the direction of this primary move. You can also see the signals for reversals when a trend is about to change. 7.Signals and Identification of Trends: One of the major challenges faced while implementing Dow theory is the accurate identification of trend reversals. Remember, if you are following the dow theory one should be not only looking for overall market direction, but also the definite reversal signals. One of the main skill used to identify trend reversals in Dow theory is peak and trough or high and low analysis. A peak is defined as the highest price of a market movement, while a trough is seen as the lowest price of a market movement. Dow theory suggests that the market doesn’t move in a straight line but from highs (peaks) to lows (troughs), with the overall moves of the market trending in a direction. An upward trend in Dow theory is a series of successively higher peaks and higher troughs. A downward trend is a series of successively lower peaks and lower troughs. 8. Manipulation In the Market: According to Charles dow the manipulation of the primary trend is not possible. where as Intraday, or day to day trading and perhaps even the secondary movements could be vulnerable to manipulation. These short movements, from a few hours to a few weeks, could be subject to manipulation by large institutions, speculators, breaking news or rumors. There is possibility that speculators, specialists or anyone else involved in the markets could manipulate the prices in short run. Individual shares could be manipulated for example the security rise up and then falls back and continues the primary trend. With this in mind one need to be aware of the situations while trading and investing. However, it would be next to impossible to manipulate the market as a whole. The market is simply too big for any kind of manipulation to occur. Why Dow Theory Is Not Infallible? Dow Theory is not a sure-fire means of beating the market hence it is not something which is infallible or fault-less. Some of the criticism received about Dow Theory is that it is really not a theory. Charles Dow's principles and theories, while developed for the stock market, can still be applied to crypto investing. Here are a few ways his knowledge can be used: Follow the trend: Dow's first principle is that the market moves in trends. In crypto investing, you can identify trends by looking at price charts and technical analysis. If the price of a particular cryptocurrency is in an uptrend, it may be a good time to consider buying. If it's in a downtrend, you may want to consider selling or waiting for a better entry point. Consider market breadth: Dow's second principle is that the market's movements should be confirmed by market breadth. This means looking beyond just the price of one cryptocurrency and examining the overall health of the market. For example, if a particular cryptocurrency is in an uptrend but the majority of other cryptocurrencies are in a downtrend, it may not be a sustainable trend. Use volume as a confirmation: Dow's third principle is that volume should confirm the trend. In crypto investing, volume can provide insight into the strength of a trend. For example, if the price of a cryptocurrency is increasing with high volume, it may indicate a strong uptrend. On the other hand, if the price is increasing with low volume, it may not be a sustainable trend. Be aware of market cycles: Dow's fourth principle is that the market moves in cycles. This means that there will be periods of growth and periods of decline. In crypto investing, it's important to be aware of these cycles and adjust your strategy accordingly. For example, during a bull market, you may want to focus on buying and holding, while during a bear market, you may want to consider shorting or staying on the sidelines. Overall, while the crypto market is different from the stock market, many of Dow's principles can still be applied to crypto investing to help you make more informed decisions. In conclusion, Dow Theory, developed by Charles Dow in the late 1800s, remains one of the most respected theories in financial market history. The theory's primary tenets are based on the idea that the stock market reflects all available information, and there are three trends in the market: primary, intermediate, and minor. The primary trend is the most important and can last several years, while the intermediate trend and minor trend are reactionary in nature. Dow Theory provides an excellent framework for traders and investors to evaluate the current state of the economy, and it has remained relevant even after 100 years. Whether you are an intraday trader, a short-term trader, or a long-term investor, the knowledge of Dow Theory will undoubtedly help you develop various strategies for your investments. So, in conclusion, Dow Theory is a respectful theory that has stood the test of time and continues to be an essential tool for anyone who trades or invests in the financial and crypto market. Unleash Your Inner Trader — Read Story About Bulls and Bears That Will Change Your Mindset! Hey there, our lovely friends! 😊 If you enjoyed reading this, please hit the "like" button 👍 and share it on your social media and groups. By doing so, more people can discover this interesting information, and we'll be encouraged to create even more awesome content for you! ♥️
Editors' picks
TVC:DJIEducation
by Vestinda
15
Uncovering Wyckoff Accumulation Secret PatternWyckoff Accumulation & Distribution is a trading strategy that was developed by Richard Wyckoff in the early 1900s. It is based on the premise that markets move in cycles and that traders may recognize and use these cycles. In accumulation phase Wyckoff strategy involves identifying a Trading Range where buyers are accumulating shares of a stock before it moves higher. This allows traders to enter into positions at lower prices and benefit from the eventual price increase. Wyckoff Accumulation is an effective way for traders and investors to gain on market movements and make profits from their trades. The Wyckoff Trading Ranges feature a chart pattern called Descending Wedge. This pattern involves two trendlines, one falling and one rising, which converge to form a wedge shape. This pattern indicates that the price of an asset is likely to break out in the direction of the falling trendline. In my understanding, "Continuous Weakness" means a shift away from selling towards buying. Sellers fail to hold the pressure, so buyers take the lead leading in D,E: MARKUP phases. Kind regards Artem Shevelev Please check out my older Education Ideas Consider put like and follow my page for more updates)
BITSTAMP:BTCUSDEducation
by ArShevelev
3
BITCOIN - Using the CCI and RSI Indicators to Predict DumpsThis was a cool trick I learned a while back and I thought I would share. The Commodity Channel Index (CCI) is very similar to the Relative Strength Index (RSI), but the CCI tends to be more sensitive. As a result, the CCI tends to drop when there is weakness in comparison to the RSI and the divergence in the two indicators becomes evident. I've highlighted to previous instances when the CCI dropped significantly in comparison to the RSI. Had you seen this, you could have exited your position and saved yourself a lot of money. The CCI is currently showing a strong bearish divergence to the RSI, which may very well be a foreshadowing of a coming BTC dump. As a result, I'm going to be in USD to be safe until I see the direction the market decides to go. I hope this trick helps you as much as it has helped me.
Education
by jpbrown1023
2
Criminal Activities in Crypto MarketThis year, crypto-related hacking has high activity. Since the beginning of October, approximately $718 million worth of cryptocurrency has been stolen, bringing the total for the year to over $3 billion. However, numbers are currently 65% lower than where they were at the end of July in 2021. In addition, revenue from scams has roughly decreased in accordance with Bitcoin prices from January 2022. Not only is scam revenue declining, but the total number of individual transfers to schemes in 2022 is at its lowest point in the previous four years. In addition, these figures imply that less individuals than ever are falling for Bitcoin frauds. Crypto scams ● Investment scams: Pump-and-dump schemes are an example of investment fraud. A fraudster will convince you to purchase an obscure cryptocurrency at a "cheap price" promising that the asset´s value would soon soar. When you purchase, the price increases. However, later the con artist sells off their holdings at a higher valuation. That is causing the price to drop and leaving you and any other victims in the red. ● SIM- Swap scams: This is also one of the most recent types of crypto scams that exist today. They take place when a con artist obtains a duplicate of your SIM card and has full access to your phone´s data. As a result, the victim may not even be notified. The victim´s cryptocurrency accounts may be already compromised and deleted. ● Fake Crypto Exchanges and Crypto Wallets: Your social media accounts will show you websites that promote affordable Bitcoin with huge returns on the initial investment. When customers pay a hefty initial charge, they are routinely prompted to spend additional money. In addition, you´ll probably discover that your money is missing when you try to withdraw it. ● Upgrade scams: Scammers trying to persuade customers agreeing to fraudulent transactions or giving over their private keys represent one of the most immediate concerns. ● Phishing scams: Although they have been around for a while, phishing schemes are still widely used. To get personal information such as the password to a cryptocurrency wallet, scammers send emails with nefarious links to a fraudulent site. It is troublesome to change the cryptocurrency key. Therefore, each key is exclusive to a wallet. As a result, a new wallet must be made in order to change this key. Tips for avoiding scams Investment scams are obvious once the provider claims there are huge returns on investment and there is no risk regarding your loss of money. Never enter secure information from an email link to protect yourself against phishing schemes. The individual has to go directly to the official website to verify it. Also, regarding the scams such as fake crypto exchanges and crypto wallets, stay with reliable exchanges and wallets with a substantial user history to avoid similar frauds. In fact, you should assume a wallet´s website is a fraud and move on if it makes an attempt to look like a well-known company. Last, you can prevent SIM swap frauds by using strong passwords and security questions along with locking the phone with your service provider. In a nutshell Nobody enjoys a crypto bear market, but there is one positive aspect. Criminal cryptocurrency activity has decreased slightly alongside that of respectable activity. However, it appears that criminal activity is more robust to price declines. Compared to respectable quantities, which are down 36% year over year, illicit volumes are only down 15%. The US dollar is the most often used currency for these kinds of fraudulent transactions. Even though there are many scams existing in the crypto market, more users know how to spot possible scams right away because that is not something new and unseen. However, the numbers of illicit activity are still high. Yet with new security protocols, there is hope that fraud can be slowed down in overwhelming the cryptocurrency market. There is no denying that cryptocurrencies have been used in illegal behavior, but the same can happen with any type of money in existence. The most important action users can take is to protect their private information as best as they can.
Education
by vf_investment
2
BITCOIN - 6141.3 WHERE THE PAIN ENDS AND THE PLEASURE BEGINS!KUCOIN:BTCUSDT Here you are looking at how a market switches from short to long and in doing so increasing it’s true value. You will be now able to find some peace finally knowing where the pain ends with BTC and this internally impulsive bear market corrective cycle. BTC ended a previous cycle after heavy selling to satisfy the true and fair contraction value (created Mar-May 2019 when the cycle began), causing violent liquidation and the shifting with volition. This value of 3821.0 was agreed upon by smart money and intelligent money during the bracketed period aforementioned. After the liquidation event when intelligence started to pull profits to begin a new contractual agreement longer term, liquidity was trapped in the marked Aqua zone and a new agreed price at that time was agreed upon. That price is 6141.3 That price just as the previous price of 3821.0 MUST be retested to complete the contractual investment and adhere to natural law within this substantial reality. Be grateful for the the good and positive elements this cycle brought you and the things you learnt from it in any situation it placed you. Know now that the new cycle will soon begin and you will have an epic investment and hold from BTC at a historical value. THANK ME LATER AND DO NOT MISS OUT. I WOULD HATE TO SAY THAT I TOLD YOU SO ;) …
Education
by TradeGod_1111
What is BitcoinLet’s start with a very simple description of Bitcoin…. Bitcoin is a decentralized digital currency, based on an open-source software design, that is used to transmit value between pseudonymous users. All transactions, after being confirmed by miners using PoW as the consensus mechanism, are stored on a distributed ledger, called a blockchain. Changes to the blockchain are append-only and are synchronized about every10 minutes across thousands of nodes located all over the world over a P2P network. All information stored on the blockchain can be viewed publicly, in real-time. Cryptographic techniques such as public-key cryptography, hash functions, and digital signatures are used to keep the blockchain secure and immutable so it can be accessible to everybody but hackable to nobody. Got all that? But as you can clearly see, the crypto world is full of technical jargon ! Jumping into crypto introduces a large number of terms that most people will be unfamiliar with. The crypto world seems to have its own language and those wishing to learn about the topic can quickly become overwhelmed with all the jargon, acronyms, and other technical terms. But if you really want to understand cryptocurrencies and how they are different, it’s really important that you do familiarize yourself with certain core foundational concepts. My goal is to cover terms and phrases that you may initially not know, but do need to know. Together, we will blast jargon into smithereens so you’re able to easily speak the language of the crypto world with ease.
Education
by parissap
10
The Role of Patience in Swing Trading.I have been actively trading the market since 2019 without doing stupid things (only minor mistakes). Before 2019 I was trying to get rich fast, and of course, that didn't go well. One of the things I have been doing since 2019 was writing principles or key ideas regarding my trading journey. That includes significant mistakes or things I noticed about the fundamental laws behind price movements. One of those principles is patience. I would put this principle in my top 5 definitely (and I have more than 40 principles I have written since 2019) The principle: Whenever the market is not providing evident opportunities, DO NOT TRADE! Be aware that you will get anxious because of the lack of executions. However, remember that history has shown you that not trading during those periods was always the best thing to do. ------------------------------------------- Let's expand the previous principle. I have realized that you can not force the market to provide opportunities, and sometimes the market will not provide opportunities for extended periods (months). The first time this happened to me, I started getting anxious because I thought I was missing something, and I executed a lot of low-quality setups, of course, that finished in an absolute mess. That kind of behavior didn't happen once to me, but several times. And my conclusion always was that if the market is not providing clear opportunities, it was always best not to trade. In other words, I would have been better without executing setups. So, at one point, I asked myself. "How many more times do I need to experience this to understand that I should not trade if the market is not following the filters I have defined?". And in 2019, I decided that would be the last one. I'm writing about this because I didn't have a lot of executions lately, and I can feel that anxiety telling me, "DO SOMETHING, just trade." And at this stage I'm currently in, I do not follow those feelings anymore, but I keep following my trading plan. ------------------------------------------- Let me explain how this applies to two assets I like trading, SP500, and Bitcoin. On Bitcoin , I'm interested in developing bullish setups, and my filters are the ones you can see in the following image. However, if the price does not move as expected, I will not trade. And not trading is tricky because of the anxiety I explained to you before. On the other hand, we have S&P500 . Similar to BTC, the price has been falling, and I expect bullish opportunities to come. However, I will not risk one dollar until I see the current descending channel broken. ------------------------------------------- Lets Recap: As a swing trader, developing your patience and waiting for the best opportunities without trading in the meantime will save you a lot of money. Remember that you can not force the market to provide you with opportunities; you can only be ready to take action when those opportunities come. I hope this concept was useful. I mainly wrote this for myself, like a journal. If you have any concepts you would like to share in the comments; it's always a pleasure to read your ideas. Have a great day!
BITSTAMP:ETHUSDEducation
by ThinkingAntsOk
12
⌛️ Bitcoin vs. Altcoins? Which will have more power?Hello, dear TradingView members. Here is an idea about Bitcoin and Ethereum and their Dominance. This idea aims to talk about what will happen after the correction ahead of us in the near future. There are four charts on this idea: The first one is the Bitcoin weekly chart. This chart shows that Bitcoin is on edge and pushing down. This descending trend is confirmed by the Elliotte Waves and Fibonacci Retracements levels. The price of Bitcoin has already pulled back from point C to D, and once again got rejected and now is continuing the correction. Once the price gets to the solid support, it might fall even more due to psychological panic in the market. The second chart is the Ethereum weekly chart. This chart also shows that ETHUSDT is pushing down even more and has already crossed vital support levels. However, four of my Fibonacci indicators show that the solid support offered on this chart is powerful and be a good level for opening long positions. The third chart is the Bitcoin Dominance chart. This chart shows that the liquidity in the cryptocurrency market is pouring into the Bitcoin market. This liquidity is coming from Ethereum and other altcoins. This suggests that Bitcoin for future long positions is a better choice since it is becoming more stable than other crypto assets. The fourth chart is the Ethereum Dominance chart. This chart shows the liquidity exiting from the Ethereum (Mother of altcoins) market. When this happens, it clearly means that ETH and other altcoins are becoming weak and less stable than BTC due to the low volume of liquidity and power. To sum it up, our result is: By breaking the Bitcoin Dominance upwards and the Ethereum Dominance breaking down, it can be concluded that bitcoin is in a better position than the altcoins. So Bitcoin will have more growth and less decline than the market. Moreover, we can profit more in long trades from Bitcoins and short transactions from altcoins. In the near future after the corrections, we also use RSI to measure the accuracy of this forecast. This correction is taking place because the market needs to fill the gap. If you need to know about Bitcoin's gaps, this chart might be helpful: If you need to learn how RSI works, this chart might be helpful: If you need to learn how Fibonacci works, this chart might be helpful: I hope this idea can be helpful. Let me know if you guys have any questions; I will be more than happy to help. Good luck, and thank you.
Education
by ShawnMCR
31
Understanding Bitcoin from a different perspective #8January 14/2020; CME Group (CME) launches option trading on its Bitcoin futures contracts. The next day, Bitcoin soars about 9% in excitement. The debut of contracts on the Chicago-based exchange was a success, with volumes exceeding those of rival Bakkt on the first day of trading. February 05/2020; Bitcoin does not excite Warren Buffet. He dubbed it "rat poison squared" in 2018, and he'll do it again in February 2020. He claimed that "cryptocurrencies have no value." "The only thing you can do with it is sell it." I don't hold any cryptocurrency and have no intention of doing so in the future." But that didn't stop the rest of the community .On February 5, 2020, a group of crypto pioneers, led by Tron Founder and Bittorrent CEO Justin Sun, hosted a three-hour charity dinner at the Happy Hollow Club in Omaha, Nebraska, for the 90-year-old Berkshire Hathaway legend. They gave him a pair of Samsung Galaxy Fold Smartphones equipped with a variety of cryptocurrencies, and Sun sent Buffet his first Bitcoin during the meal. Despite Buffet's unfavorable view on Bitcoin, there were rumblings that he might be on the verge of changing his mind. In 2020, he famously changed his mind about gold and bought a stake in one of the world's largest gold mines. ************************************************************************************* Personally i would love buffet within the bitcoin community. I am tired of Elon musk being our biggest Celebrity influencer. ********************************************************************************** Remember Craig Wright, the Australian crypto entrepreneur who claimed to be Satoshi Nakamoto in 2015, only to be met with skepticism and the response "uh, no you're not?" He's back, and he's not happy about it.Wright, who claims to be Bitcoin's sole inventor, now argues that the Bitcoin Core developer team is infringing on his intellectual property by altering the database. "As the single creator of Bitcoin, I own full rights to the Bitcoin registry," he stated in a blog post on February 13, 2020. People can fork my program and create their own variants. They do not, however, have the authority to alter the protocol using the underlying database." March 06/2020; The epidemic has struck. Covid-19 slams into our life, sending markets all across the world into a tailspin. As the world rushes into lockdown, Bitcoin does not escape, plummeting by more than 50% in less than a week. On March 12, it plummeted from about $8,000 to under $5,000 in a single day, losing 39% of its value. Investors flocked to cash as market liquidity froze. Surprisingly, Bitcoin traders immediately returned to the game — by May, the price had risen to pre-pandemic levels, supported by a large Fed stimulus package and 0% interest rates. April 02/2020; Mike Novogratz, CEO of crypto merchant bank Galaxy Digital, tells CNBC's Closing Bell that if Bitcoin's price doesn't double by October (from a high of $7,236.39 on 2 April) and hit $20,000 by the end of the year, he'll "hang up his spurs" and maybe abandon the currency. He claims that "this is the year of Bitcoin." He isn't alone in this. Despite the pandemic's effects, optimistic predictions are abundant this year.In June 2020, the Crypto Research Report (CRR) will release its tenth edition, which will be a huge success. It anticipated the price of Bitcoin will climb to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030, using the "equation of exchange" methodology, which forecasts a target price based on "certain assumptions regarding changes in supply and demand." In five years, you've grown 35-fold? That's something we'd be willing to consider. April 30/2020; Bitcoin is on a tear right now. Since the end of March, the currency has risen by 34%, approaching $9,500 on April 30 and ended the month at $8,627.32. It's blasting back up to $10,000 — but why?Well, partly because it was on a tear before the pandemic, and it's only now going back on track as investors regain confidence (and equities markets make an unexpectedly robust comeback). It also doesn't hurt that Fed Chairman Jerome Powell reaffirmed his commitment to bolstering the US economy, injecting upwards of $6 trillion in liquidity and promising more if necessary.Most Bitcoin investors are now optimistic, anticipating a price of $20,000 by the end of the year. "Bitcoin is now trading at a major inflexion point," according to experts at Stack, a Singapore-based index fund. "Significant Fibonacci retracements, 50-day moving averages, and 10-day moving averages converge on the daily chart." May 11/2020; To the uninitiated, halvings are generally great for the price of Bitcoin - the first one boosted it from $12 to over $1,000 in a year. The most recent, which took place on May 11 a day earlier than scheduled, lowers the payout for mining a Bitcoin block from 12.5 to 6.25 Bitcoins. It sparked a lot of market volatility, with prices jumping all over the place before bursting beyond the $10,000 threshold again on June 1. In fact, many individuals believed it would rise to $20,000 by the end of 2020. PlanB, a crypto analyst, was one of the most bullish, predicting a price of $100,000 by 2020-24. That's what I call hope.Despite the fact that the upside was not as large (proportionally) as previous halvings, it signaled the start of a wonderful summer - with lots of exciting things happening, including the growth of new investment instruments. The second half of June saw unprecedented inflows into Bitcoin-based exchange-traded instruments, such as Grayscale's Bitcoin Trust (OTC-GBTC), the world's largest Bitcoin fund by AUM, which held 2.4 percent of the entire global BTC supply as of September 2020. June 06/2020; According to an article by The Intercept, the US Pentagon developed a wargame scenario called the Joint Land, Air, and Sea Strategic Special Program (JLASS) in 2018, in which disillusioned young Gen Z-ers in the twenty-first century are recruited to fight the establishment and rewarded with Bitcoin for their participation in the "Zbellion." Long-term investors own 11.4 million BTC (about $107 billion) as of June 2020, bringing the tradeable supply down to just 20%. However, according to Chainalysis, the 3.5 million coins that are actively exchanged supply the market and hence keep the price stable."Retail traders, defined as individuals who deposit less than $10,000 worth of Bitcoin on exchanges at a time," according to the research, "appears to be the great majority, accounting for 96 percent of all transactions submitted to exchanges on an average weekly basis." "However, professional traders control the market's liquidity, accounting for 85% of all Bitcoin value transmitted to exchanges in USD." July 21/2020; Ethereum has surpassed Bitcoin as the network with the highest daily value settlements, thanks to a boost from the DeFi campaign. Bitcoin increases 2.50 percent as prices remain unaffected.Etherum had taken over, according to new Messari data, which meant that the dollar worth of Ether and its DeFi tokens was now higher than that of Bitcoin. While Bitcoin had been relatively flat in recent weeks, DeFi tokens on the Ethereum network had dominated the market. Other crypto currencies were beginning to appear in the market to give Bitcoin a run for its money, and the DeFi sector was gaining popularity at a rapid pace. The good news is that US banks can now hold Bitcoin on behalf of their customers, allowing the conventional main street players to finally participate. On July 22, the Office of the Comptroller of the Currency (OCC) announced that all U.S. national chartered banks could now provide cryptocurrency custody services. It was a big event, but it wasn't fantastic news for niche platforms like Coinbase, which had been the only ones able to provide the service up until now. For a long time, prices had been hovering around $9,000, but Bitcoin finally broke out at the end of July, with an exhilarating 11.08 percent price spike on July 27 that propelled it past $11,000. August 06/2020; Bitcoin, according to US Congressman Tom Emmer, will only gain stronger as we emerge from the COVID pandemic. And it appears he is correct. Bitcoin, like other "safe haven" investments, has been steadily increasing this week.It benefits from concerns that Coronavirus stimulus measures may result in high inflation. With Bitcoin being used as a hedge against inflation. September 03/2020; So, what went wrong? Everything was going great for the entire month of August, with the price being stable between $11,000 and $12,000, until a crash on September 3 knocked the rate back down to $9,987.86, with the day closing at $10,160. For another two weeks, it wouldn't clear $11,000. So, what happened to devalue it by 10%? According to Coindesk, a significant increase in deposits onto exchanges suggests that some investors may be trying to dump all of their Bitcoin at once, lowering prices. Bitcoin miners have generated over 18.5 million BTC, accounting for 88 percent of the overall limit of 21 million. However, due to ongoing halvings, it will take more than a century to reach 100 percent, with full capacity predicted in 2140.By the way, there were almost 17,000 Bitcoin millionaires as of September 2020. October 21/2020; Bitcoin prices have remained stable at roughly $10,500-11,000, up around 50% on the year but not enough to set the globe ablaze. Everything shifts all of a sudden.PayPal is launching a new service on October 21 that will allow its 346 million consumers to buy, hold, and sell cryptocurrencies straight from their PayPal accounts, as well as use it as a funding source for PayPal's 26 million merchants. That's a huge event, and Bitcoin immediately soars over 7% to surpass the $12,000 barrier for the first time since August, setting a new high for the year so far. "What's grabbing the attention is PayPal's sheer size. According to Jason Deane, a cryptocurrency analyst at Quantum Economics, "This could easily go down in history as a watershed moment, the time at which bitcoin becomes truly mainstream."Former critics jump on board to bolster Bitcoin's reputation, with PayPal marking a tipping point in the market. JP Morgan commented on October 26 that Bitcoin had "considerable price upside," a significant shift from CEO Jamie Dimon's previous comments that the currency was a "fraud." November 05/2020; In trading today, Bitcoin reaches a high of $15,770, up over 10% from yesterday's closing, giving it a year-to-date gain of over 100% and bringing it to its record level in three years.Traders believe it's because the Federal Reserve continues to print money.The markets are desperately attempting to figure out and price in the possibilities as the US election draws closer and grows weirder. Bitcoin, on the other hand, may be in for a win in either case. "The Fed prints if there is societal unrest as a result of Trump's victory. If the election results in a blue wave and taxes rise, the dollar will decline since the Fed will continue to print more money "CoinDesk spoke with Bill Noble, the principal technical analyst at Token Metrics, a cryptocurrency research firm. It appears that all of the bulls were correct when they predicted $20,000 by the end of 2020. Bitcoin is almost there, having reached a daily high of $19,864 on November 30 before finishing the month at $19,700.On November 20, Rick Rieder, the world's largest money manager, declared that Bitcoin was here to stay and that it may "replace gold." Inigo Fraser-Jenkins, an analyst at Alliance Bernstein, had a change of heart on November 30, informing clients that Bitcoin has a place in asset allocation. December 16/2020 On December 16, the cryptocurrency breaks through the $20,000 barrier, hardly pausing before soaring to a new high of $21,576 — a year-over-year increase of almost 180 percent. It doesn't end there, though. The value of the currency continues to rise, reaching $24,000 on December 21 and $26,000 on December 26. We believe Jeff Dorman, Chief Investing Officer at digital asset investment behemoth Arca, summed up the situation very effectively. He told CoinDesk, "Bitcoin has transitioned from "digital assets playground" to "mainstream global investment." "Investors now have the expertise and resources to purchase bitcoin on their own, and we're seeing it in real time, which happened far faster than we expected."However, he cautioned against fund managers jumping on the bandwagon too quickly. "Investors will soon be looking for digital asset hedge fund strategies that don't own any Bitcoin, because they want fund managers to expose them to assets they can't acquire themselves or are unaware of." As a result, actively managed hedge funds and passive indexes constructed around high Bitcoin holdings are likely to have a short shelf life." Written by Neotrader
Education
by trader734567
DXY - Elliott Wave Breakdown ✅Following on from our last post on DXY, we have moved up a considerable amount. In our last post we identified the higher timeframe impulsive move and waited for a catalyst, NFP, to move the market in our direction. See our previous post below: In Elliott Wave Theory, the impulsive wave can be broken down into the following 5 waves: Wave 1 - is made up of 5 subwaves (impulse) Wave 2 - Is a corrective wave made up of 3 waves (ABC correction) Wave 3 - is another impulse wave made up of 5 subwaves (impulse) Wave 4 - is a corrective wave made up of 3 waves (ABC correction) Wave 5 - Can be either an impulse or a correction - But its made up of 5 waves. In this scenario, the 5th wave is appearing to be an impulsive move. We have a channel which we will be using as a guide to help us identify when the 5th wave will finish. The way to use DXY is by doing the following: Bullish DXY = USD Strength. Bearish DXY = USD weakness 1. Analyse DXY for reversal zones and identify what the next move is 2. In our last post, we identified a reversal zone and we were waiting for NFP to be the catalyst to get the market moving (FEB 4th) 3. When DXY approaches the reversal zone, we go on to USD pairs and analyse them 4. Find a pair where you think USD will bounce/reject (depending on whether you're trading USD/XXX or XXX/USD) e.g. in the VIP, we correlated DXY with EURUSD. We identified that we were bullish DXY = Bearish EURUSD. We had a trade setup ready and we were waiting for confirmation. See below for the the VIP setup we had. Went into 10pip drawdown and hit TP of over 500pips = 1:50 RR. Hope this post helped a little! Goodluck and as always, trade safe!
TVC:DXYEducation
by WicktatorFX
5
Bearish Candlestick Pattern's 📉📉📉📈 Technical Analysis I use those bearish candlestick patterns as an extra confluence when price gets into my POI (point of interest) they can make your trade much better. ⬇️ Bearish POI look for : Tweezer Tops Three Red Crows Bearish Engulfing Evening Star Hanging Man Evening Star Gravestone Doji ‼️ Don't use them ALONE as a single argument, the change of getting a good trade could dramatically decrease What do you think about those candlestick patterns, do you use them ?
Education
by AnonimFXRO
1
Combining wyckoff's theory with ONCHAIN data"This is a hypothesis that needs more testing to be more precise." Wyckoff's theory t is one of the most influential theories of market expression, and the most important components of which are lateral movement areas and trends. This theory turns the graph into something like Dots and lines (stations and paths). But it is not as easy to use as written in books. After getting acquainted with Wyckoff's theory, I read several books on the subject, hoping that they could help me identify this area of ​​lateral movement, the area of accumulation, or distribution. But there was a fundamental drawback. It is challenging to diagnose this issue. In fact, the rules discussed in these books are highly interpretive and subjective, and two different individual traders may come to exactly opposite conclusions based on their interpretation. But as I became more familiar with the onchain analysis, an idea came to my mind that might be useful for more objectively recognizing charts based on Wyckoff's theory. Composite Man: Wyckoff proposed a theory to help understand price movements in stocks. this is the “Composite Man” theory. (The same concept of whales or strong hands.) he said: “…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.” (The Richard D. Wyckoff Course in Stock Market Science and Technique, section 9, p. 1-2) In fact, composite Man is a hypothetical man who has so much money and stocks that when he wants he can gradually increase the price by buying stocks and creating demand, and when the price goes high enough he selles his stock and lower the price. The composite man is the main player in the market. Wyckoff says that if you want to make a good profit from the market, figure out what a composite man game is. In fact, having a way of showing us where the Composite Man is in the market, can help us understand future trends Who are the strong hands in the cryptocurrency market? (I use the strong hand word here instead of the composite man) There are those who buy or sell more per capita than other market participants (retailers). To understand this in the bitcoin market, I have used 3 charts and concepts: 1- Sending Addresses: The number of coins addresses making inflow transactions to the exchange. Indicates the number of sellers' wallets (number of sellers) 2- buyers Addresses: The number of coins addresses making outflow transactions from the exchange. Indicates the number of buyers' wallets (number of buyers) 3- Pay attention to this issue: the volume of transactions shows both the volume of sales and the buy (Volume of buy and sale is equal in the market) Considering the above 3 issues, it can be concluded: - If the number of Receiving Addresses is higher than the Sending Addresses (the number of people who bought compared to the number of those who sold), it indicates that more people bought and fewer people sold (given that the volume of sales and buys are the same) So the sellers were stronger hands. In such a situation, the composite man is on the sales side. - If the number of Sending Addresses is higher than the Receiving Addresses (number of people who have sold more than the number of people who have bought), it indicates that more people have been sellers and fewer people have been buyers (given that the volume of sales and buys are the same) so the buyers were stronger hands. In such a situation, the Composite man is on the buying side. To do this, the oscillator at the bottom of the chart divides the Number of Receiving Addresses by the Number of Sending Addresses. Numbers above 1.2 indicate that the Composite man is on the side of the sellers and should expect a price reduction in the future. Values below 1 (or 1.2) indicate that the Composite man is on the buyers side. And we should expect price increases in the future.
BITSTAMP:BTCUSDEducation
by cryptoonchain
What is going on in the markets? Aftermaths of Russian invasionRight after Russia declared war and started its military operations in Ukraine, the markets started going crazy. Investors started moving to "safe heaven" trades and sticking with "risk-off" securities. GOLD (XAU/USD) is everyone's favourite to trade for the moment, as the price plummeted straight after the escalation of the war. It has experienced a growth of +4.5% so far, and it has more upside potential. EUR/USD, having a strong negative correlation with GOLD, has endured a 200 pip drop so far, constituting a 1.8% dip. AUD/USD, GBP/USD and other highly correlated USD pairs have deteriorated as well. BITCOIN, often claimed as "digital Gold", is still continuing its downside movements, experiencing a 12.6% drop in 24 hours. Sticking to the safe heavens and riding the trend would be the best possibility right now. Also, remember to stay risk tolerant and cold-blooded, as the markets could get really volatile from time to time, taking into account the current situation.
OANDA:XAUUSDEducation
by Investroy
9
WHAT are Bitcoin cycles and WHY is it so important ✅❓What are bitcoin cycles and why is it so important❓ 🚀This graph shows the entire history of bitcoin, approximately 13 years. If you open the logarithmic display of the chart, you can see some patterns in price behavior. Namely, that bitcoin moves in cycles. Which in turn are divided into an uptrend and a downtrend. 🎢Three complete cycles can be clearly seen on the chart. One cycle lasts four years on average. Of which 2.5 years of growth, and 1.5 years of decline. At the same time we would like to note that the cycles expand over time. But with the arrival of big money, institutional investors and various global companies, this pattern will be less and less noticeable (like the example of the S&P 500). Why is bitcoin cyclical❓ The answer is actually very simple. It is only noticeable because bitcoin is in its early stage of development and acceptance. There are cycles in everything, it is a natural phenomenon. 🔋As examples: - World cycles, every 10 to 12 years there is a crisis followed by a renewal and continued growth; - Natural cycles, many examples of how the environment develops and renews; - Our well-being, sometimes you have noticed that your mood and energy is at its highest when you are very productive and feel good, and vice versa, when it is at its lowest and you are less productive. Markets are human creations, so they are also subject to natural behavior. How can cycles help trading❓ ✅Statistically, according to brokers and exchanges, 85-90% of traders are losing, 5-10% of traders are breaking even and only 5-7% of traders are earning. One of the most important tasks for any trader is to identify the right trend. Usually, when traders try to trade against the trend, they lose their trading accounts. That is why it is important to understand how to identify the trend and how to earn with the movement of the trend. This is where understanding bitcoin cycles helps. Some of our trading systems are based on these principles. 💚 Please like and subscribe to us to get more ideas like this.
BNC:BLXEducation
by AlexWhale
12