We are watching the money flow at work -> The market usually trades in areas that it feels comfortable in. We watched Bitcoin drop $6K Level indicator that for over a year people said would never be possible, and this happened, The reason was that there were way too many people that purchased at $6K - $12K which was a 100% difference in price. then we ranged between these prices and kept bouncing at $6K until the market eventually lost the interest of people that expected it to go back to $20K and the supply that was available was no longer interesting therefore it pulled down into areas of interest.
Now let's talk about institutions that herd the retail traders.
Institutions don't really care if it is trading at $6K or 3K or 1K. they will be buying at all of these prices no matter what their job is just to steer the market in the right direction, the direction where they think there will be least resistance and maximum potential profits.
What was done? The market was heavily shorted all the way down to $3K and it was an excellent move, Over 100% drop from where we were trading, Hedge funds that actually know what they were doing were able to not only profit but to also start loading up the coins to be able to take it to the next intersection. They care what the books show and want to make the most amount of money on the rips that come into play. So after the shorts were released they started accumulation of coins at this next intersection.
The market now pushed from $3,300 and was steered into the direction of $6K. I think that these investors/institutions underestimated the potential break out that the market was preparing for, and was probably controlled by retail investors by the way it kept buying up the market. And alot of these institutions would unload there coins at $4,000-4200 until it started breaking out, which forced them to market buy forcing the price to break almost all critical areas. We are literally one moving average from being in a clear sky break out. But there is one thing, The market could still get suppressed, If the institutions are not buying, and retail buyers are going to be either holding or selling this means for one thing, The market will start to overextend and exhaust itself. Without major players it just won't be able to get over the previous support which was once the resistance of $6,000.
So, What's next?
This is where accumulation and distribution come into play. The funds and large players will stop buying, they will start to hedge against their positions, its something that we see happening right now since the shorts are in a complete oversold position, We are not breaking new highs but getting very close to it. These shorts will only release between previous resistance which is $6K or when we start pulling back down into support $4800-4500-4000 area. Those are the areas I would look for.
Does this mean you should go short?, No.. You should wait for confluence, More confirmations, and more direction into the downside. Just like you don't want to be buying up the market when the market is dropping, You want to wait for a bounce and just start buying in lots at support, and hedging where resistance reveals itself.
Does this mean you should go long? No.. Once again, You want to buy where supports are, not where the resistance is.
All trades that go on should be aware that the market can get very volatile and if you go long here, you may be in for a multiple month pull back for you to get back to your entry price. Just the same goes for shorts, the price can spike and stop you, so make sure the actual trend has changed before trying to catch the top...
None of this information is financial or trading advice, Its just a overlook and opinion of what the market does, this can be applied to any market.
Any if you see someone writing about how they know the market will goto 20K or 1K they are completely full of doo doo, and the only thing that any one knows ithat the market will go RIGHT!
Good luck traders, Much love, Be safe out there :)
Now let's talk about institutions that herd the retail traders.
Institutions don't really care if it is trading at $6K or 3K or 1K. they will be buying at all of these prices no matter what their job is just to steer the market in the right direction, the direction where they think there will be least resistance and maximum potential profits.
What was done? The market was heavily shorted all the way down to $3K and it was an excellent move, Over 100% drop from where we were trading, Hedge funds that actually know what they were doing were able to not only profit but to also start loading up the coins to be able to take it to the next intersection. They care what the books show and want to make the most amount of money on the rips that come into play. So after the shorts were released they started accumulation of coins at this next intersection.
The market now pushed from $3,300 and was steered into the direction of $6K. I think that these investors/institutions underestimated the potential break out that the market was preparing for, and was probably controlled by retail investors by the way it kept buying up the market. And alot of these institutions would unload there coins at $4,000-4200 until it started breaking out, which forced them to market buy forcing the price to break almost all critical areas. We are literally one moving average from being in a clear sky break out. But there is one thing, The market could still get suppressed, If the institutions are not buying, and retail buyers are going to be either holding or selling this means for one thing, The market will start to overextend and exhaust itself. Without major players it just won't be able to get over the previous support which was once the resistance of $6,000.
So, What's next?
This is where accumulation and distribution come into play. The funds and large players will stop buying, they will start to hedge against their positions, its something that we see happening right now since the shorts are in a complete oversold position, We are not breaking new highs but getting very close to it. These shorts will only release between previous resistance which is $6K or when we start pulling back down into support $4800-4500-4000 area. Those are the areas I would look for.
Does this mean you should go short?, No.. You should wait for confluence, More confirmations, and more direction into the downside. Just like you don't want to be buying up the market when the market is dropping, You want to wait for a bounce and just start buying in lots at support, and hedging where resistance reveals itself.
Does this mean you should go long? No.. Once again, You want to buy where supports are, not where the resistance is.
All trades that go on should be aware that the market can get very volatile and if you go long here, you may be in for a multiple month pull back for you to get back to your entry price. Just the same goes for shorts, the price can spike and stop you, so make sure the actual trend has changed before trying to catch the top...
None of this information is financial or trading advice, Its just a overlook and opinion of what the market does, this can be applied to any market.
Any if you see someone writing about how they know the market will goto 20K or 1K they are completely full of doo doo, and the only thing that any one knows ithat the market will go RIGHT!
Good luck traders, Much love, Be safe out there :)
Comment:
Please pull the chart apart in order to see it better.
