BTCUSD- Fear not the whales! Staying afloat amidst manipulation
OH NO THE WHALES ARE MOVING THE MARKET!!!!
Yes, yes they are.
But that doesn't mean you have to watch your stops get swallowed up like a helpless krill!
All jokes aside, I hardly ever post about bitcoin as I'm an Ether guy myself, but there really is some highly suspect moves in the BTC market as of late. D4 did a great job of covering some of the suspect zones (link to his chart is provided) and in the comments you can find some secondary commentary and an accompanying chart showing some additional evidence of possible manipulation.
But lets be real, if you're trading cryptos and keep your head in the game, you already knew this was happening.
On to the good stuff!
So today we're going to:
Staying Afloat
***This is just what I personally do to manage my trades during heavy manipulation, it is neither perfect nor without risk; but if you stay proactive about watching the market you should be able to minimize the likeliness of taking losses in a whale sell off.
Possible Paths
Channels can be a beautiful thing
Theres not too much to this one, I just love examples of market geometry and technicals playing out in fromt of me. Really the channels began forming shortly after the recent cycle low reversal. It's interesting to note that both the high/low cycle shifted by a single channel each time the fib ratios were reached.
Stay frosty, and learn to fight the whales fellow crypto traders!
--------------------------------------------------------------------------
DISCLOSURE:
This analysis is meant for educational purposes only. You trade at your own risk!
Austin Doyle
CTO
Yes, yes they are.
But that doesn't mean you have to watch your stops get swallowed up like a helpless krill!
All jokes aside, I hardly ever post about bitcoin as I'm an Ether guy myself, but there really is some highly suspect moves in the BTC market as of late. D4 did a great job of covering some of the suspect zones (link to his chart is provided) and in the comments you can find some secondary commentary and an accompanying chart showing some additional evidence of possible manipulation.
But lets be real, if you're trading cryptos and keep your head in the game, you already knew this was happening.
On to the good stuff!
So today we're going to:
- Check out one of my methods for staying away from disastrous losses from liquidated stops while whales move the market
- Look at some possible paths for BTC over the next day or so
- Oogle some obescenely beautiful channel movement
Staying Afloat
***This is just what I personally do to manage my trades during heavy manipulation, it is neither perfect nor without risk; but if you stay proactive about watching the market you should be able to minimize the likeliness of taking losses in a whale sell off.
- I truly cant stress this one enough: Monitor to break even before you even consider dropping a stop.
- If you're trading 4 hours or greater bars, drop down your usual trade time cycle to half of its usual value and do your best to check the market often for dramatic shifts. (I usually trade 4 hour charts, in this market I drop to two and do my best to check every 4 hours at most).
- Place very loose stops (I usually push down my normal stop as much as 6-8% lower
- DONT LOSE YOUR HEAD! whales moving the markets can be scary to watch, but they're relatively easy to pick out.
- You can see how many major "whale moves" correct rather rapidly (likely after minnow positions are liquidated), HODL is never a trade strategy, but a calculated short term hold for indications of a market shift is a completely viable strategy; possibly even keeping you from the way too common "buy high, sell low syndrome")
Possible Paths
- Blue seems unlikely with the dropping volume against the sharp recovery that just occurred
- Green is what I would really like to see and would be the "healthiest", id be more bullish on a pump to the 100% fib after some strong consolidation along the channel than a low volume jet upwards.
- I dont think this scenario is too likely considering weve been moving channel bound for upwards of two weeks. If it does though, we're looking at some good support at both $8750 and $8000 (~%50 fib of current channel bound cycle)
Channels can be a beautiful thing
Theres not too much to this one, I just love examples of market geometry and technicals playing out in fromt of me. Really the channels began forming shortly after the recent cycle low reversal. It's interesting to note that both the high/low cycle shifted by a single channel each time the fib ratios were reached.
Stay frosty, and learn to fight the whales fellow crypto traders!
--------------------------------------------------------------------------
DISCLOSURE:
This analysis is meant for educational purposes only. You trade at your own risk!
Austin Doyle
CTO
This one is a no brainer for most, but it must be said.
If your margin wont cover a rapid shift, THEN DONT TRADE ON A MARGIN AND RISK LIQUIDATION!!!!