BITCOIN IS A STORE OF VALUE, THAT IS EXACTLY WHY IS A BAD MOMENT
Currently Bitco and all other markets are suffering a lot. Lets be rational and analyse the situation.
We probably all minimize the impact of global health issues, but with many economies shutting down and many other to come (US is still in the initial phase), I think that this is just the beginning.
Bitcoin and Gold are a store of value, a good investment against central banks prining money and against inflation, they are not a safe heaven when firms and people need fresh cash. Imagine: you have 10 bitcoin or 10 goldbricks in your account but you are starving with not even a penny in your pocket. What would you do? You would exchange bitcoin or gold for cash, no matter what the price is. Companies and fund being shut down for one month (as of now, could last muchlonger) means that they currently do not know if they will open again.
Even gold went down, it does not mean that is not a store of value. Simply in this moment, people and economies do NOT need a store of value.
The impact on btc was even stronger as doing leverage purchases is easier and comes with almost no cost (contrarily to traditional markets), and with halving ahead almost everybody was queuing with leverage LONGS.
Now bitcoin and everything else is linked to financial markets, because of risks of lockdown. Lets see how they wil do tomorrow, but the sensation, with also spain and other countries after Italy planning to close every activity besides supermarkets and hospitals, is that we will go down again. I do not think markets overreacted last weeks, maybe just bitcoin did because all the levergae positions squeezed.
I do not honestly know which direction, if I should pick one I would say down, but we do not know the real situation about the virus. I just expect crazy vola again, after a quiet weekend.
At the moment BTC seems to find some stability in the interval 5200-5500, but even if there is an ascending triangle in formation (eliminating all the noises) at 5500 theprice was rejected many times.
5500 is also the level of 100Billion market cap for the 18.2million btc existing , so it is a very important edge.
Said that, here is the STRANGLE TRADING IDEA, ideal for high vola moments in which direction is difficult to say and we just look for a big move, one way or another. Do not use high leverages as the vola is too high rightnow.
If we break 5600 we could bounce up to 6700-7000. Indeed now we are exactly on the lower edge of the descending channel from 14k highs.
Please note that even if we bounce we are still in a medium term short trend.
If we break 5200 we could go to 3300 (which corresponds to 60bn market cap, level that held the price during 2019 lows) as there is absolutely no support from where we are now. 5200 is a very strong level also because lies on the longer term ascending trendline. This seems to be the priority scenario right now.
Let me know what you think about my idea and do not forget to share yours !!
We probably all minimize the impact of global health issues, but with many economies shutting down and many other to come (US is still in the initial phase), I think that this is just the beginning.
Bitcoin and Gold are a store of value, a good investment against central banks prining money and against inflation, they are not a safe heaven when firms and people need fresh cash. Imagine: you have 10 bitcoin or 10 goldbricks in your account but you are starving with not even a penny in your pocket. What would you do? You would exchange bitcoin or gold for cash, no matter what the price is. Companies and fund being shut down for one month (as of now, could last muchlonger) means that they currently do not know if they will open again.
Even gold went down, it does not mean that is not a store of value. Simply in this moment, people and economies do NOT need a store of value.
The impact on btc was even stronger as doing leverage purchases is easier and comes with almost no cost (contrarily to traditional markets), and with halving ahead almost everybody was queuing with leverage LONGS.
Now bitcoin and everything else is linked to financial markets, because of risks of lockdown. Lets see how they wil do tomorrow, but the sensation, with also spain and other countries after Italy planning to close every activity besides supermarkets and hospitals, is that we will go down again. I do not think markets overreacted last weeks, maybe just bitcoin did because all the levergae positions squeezed.
I do not honestly know which direction, if I should pick one I would say down, but we do not know the real situation about the virus. I just expect crazy vola again, after a quiet weekend.
At the moment BTC seems to find some stability in the interval 5200-5500, but even if there is an ascending triangle in formation (eliminating all the noises) at 5500 theprice was rejected many times.
5500 is also the level of 100Billion market cap for the 18.2million btc existing , so it is a very important edge.
Said that, here is the STRANGLE TRADING IDEA, ideal for high vola moments in which direction is difficult to say and we just look for a big move, one way or another. Do not use high leverages as the vola is too high rightnow.
If we break 5600 we could bounce up to 6700-7000. Indeed now we are exactly on the lower edge of the descending channel from 14k highs.
Please note that even if we bounce we are still in a medium term short trend.
If we break 5200 we could go to 3300 (which corresponds to 60bn market cap, level that held the price during 2019 lows) as there is absolutely no support from where we are now. 5200 is a very strong level also because lies on the longer term ascending trendline. This seems to be the priority scenario right now.
Let me know what you think about my idea and do not forget to share yours !!
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Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427