FAT_JAKEY

When is a good time to take profit...

Short
BITFINEX:BTCUSD   Bitcoin
BTCUSD
Looking at the chart you can see that we are at the top of the range, bitcoin has received a lot of positivity in the media as of recent the biggest being the CME futures . Like Goldbug stated though, this won't affect the price in the slightest, this doesn't mean the wall street billions will be flooding in come December as it is cash settled so no bitcoins are even traded come settlement.

The upside is very limited, the highest I can see is 8350. Volume is really dying off, upon breaking that symmetrical triangle there really hasn't been much follow through at all, we also have divergences shown on the larger time frames on the RSI . Another thing worth noting is the lack of longs and shorts currently 23:10 ratio, 60% of them shorts being hedges. Now I'm not saying to blindly short it, but it's not a bad idea to be hedging up here because when the correction comes, it's going to be harsher than ever.

We're at the point in the market where 99% of people that own bitcoin are in profit. The bid side looks pretty good right now, but when it's obvious we are correcting and the big players stop propping up the price, them bids will be pulled, longs will be market closed, shorts will be opened. If we have a correction that is going to be as big as the previous ones, that will break the parabolic curve and be the beginning of the bitcoin bear market.

One final thing...
Don't invest more than you can afford to lose.
A lot of people have made some extraordinary gains over the past couple of years, make sure you've realised enough profit so that if price crashed and never recovered you'd still be happy with what you made. Being all in on anything is the worst thing you'd want to do.

Trade safely.
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