“It resonates with us when a client says ‘I want to hold Bitcoin'because I think it is an alternate store of value’” Rana Yared, Goldman Sachs executive. Often for new investors it is difficult to keep their eye on the prize. This is where greed and fear often prevent someone from being in the market when larger moves happen.
Well within an hour after posting the article yesterday, bitcoin' was at 7500 or a 5% move from 7114 at the time I hit post. Market sentiment changes on a dime and without warning. Imagine the move that happens, in a short period of time when, Wall Street enters the market with ETF's, ETN's or other products that allow for trading of the main street investor.
Reminds me of the Movie "Joe Dirt", and the quote "Is this where you wanna be when Jesus comes back?" Well how do you want to be positioned when wall street comes in? Do you think you are going to catch that spike? Goldman obviously is positioning themselves for entry into the space and these are not "whales", they are megaladons! I believe the initial spike is going to be a major one, and there will be some signals before, but if you are scared, and hesitating, or believing you are going to pick up bitcoin at 3k, well GOOD LUCK! Your simply selling into the banks and institutions that are slowly accumulating under your nose.
Paul Tudor Jones used to break trades into small blocks using multiple brokers. The reason for thi traders found out he was buying, the stock rallied. He accumulated in the dark not in broad daylight. No different then Berkshire Hathaway' announcing they bought Apple 'the first quarter. Apple' rallied from 150's to 190. You are not going to catch that spike.
7490 is the initial level to push through. This is the 0.382 retrace of the overall bearish retrace. 7916-8912 is the zone that contains the 0.618 retrace and a level we will look for a reversal signal. Longer term we are looking at the 10-11k levels as an area to start reducing this position trade, or we may just stay in it depending on how the market reacts when we get there. We have added at 7600 & 8464 so though we could add here lets we want to wait for a move through the initial resistance level at 7490 to provide some evidence this is not a failed breakout.
Bottom line; if you believe in the space, do not lose sight of the forest for the trees. Quit looking at those trying to time the market with we may go here, we may go there. I know I get a lot of crap on being long, but this is a long term outlook and I do this to keep the market in perspective. Its a marathon' not a sprint', and long term I believe the market moves higher. If you do not then IBM' is on sale, and something is happening with Kohls'
I hope everyone had a wonderful Memorial Day Weekend and if you are a Veteran I want to say thank you for your service!
I think this market has to be seen in the long run.
And who invests in it must think that it will not make immediate profits and the lambo will have to wait.
how much time? One year? two years ? Do not know.
I know, I am sure that whoever accumulates now will multiply the capital invested many times.
Patience is the key to this market.
I am convinced that we are at a stage where the big institutional investors, who are only now really seeing the potential of this market and who have lost the opportunity to buy when the price of the major currencies was derisory, are slowly entering and lowering the price to enter the market at the lowest possible price.
However they know that the price can not fall back to the starting prices as this implies the risk of the market in general losing all the credibility it took a long time to create.
They know that Bitcoin (just to give an example) can not in a single year go from a few dollars to 20000 dollars and again to a few dollars.
They know that if this happens it will take a long time to make the market credible again in the eyes of the general public.
So this fall, artificially driven by large futures investors has a limit. I would say the minima are close and those who accumulate now will soon (months, or a few years) have huge gains.
Do not despair and wait patiently. Accumulate now, whether the 5000 or 7000 prices are on balance.
This strategy is not for the day trader. In the end who accumulated more will be who will win more.
Sorry for my English which is not my first language.
@goldbug1, It's just my humble opinion, not an explanation. Who am I to give explanations to so many experts? :)) I'm glad you agree. Keep the good work !! Cheers
Boomslang13
⋅
@GoldBug Been long since 6550. But, then i'm an investor not a trader. It's no different than running a marathon. I have a clear start/entry point. And, I have a clear finish line/exit point. The rest is the normal ups and downs you mentally and physically go through throughout the race. It is normal to have weak moments and question yourself. But, never...ever give up. I have one goal. Get to the finish. No matter how long it takes. I will see you there! Thanks for your insight, as always.
@Boomslang13, LOL - I agree many are trying to trade themselves to riches and they may as well buy a lottery ticket. Trading works when its part of a broader investment strategy.
STPAUL007
⋅
I'm enjoying your analysis not because of TA but because of your life style advice's. They have more wisdom then the other guys with 100% ego and 20% accuracy.
STPAUL007
⋅
@KIRYLKAZLOU, If you like my idea or you think it's not correct please let me know. Thank you.
goldbug1
⋅
@KIRYLKAZLOU, LOL Thank you - psychology is the most important thing to trading let alone life. google ed seykota one of the greatest trend traders ever.
MrRenev
⋅
Just a word of caution, make sure you don't end up a bagHODLer.
Just being in for the long run does not always work out.
Ask all the bagHODLers that waited years and never got their money back.
And who invests in it must think that it will not make immediate profits and the lambo will have to wait.
how much time? One year? two years ? Do not know.
I know, I am sure that whoever accumulates now will multiply the capital invested many times.
Patience is the key to this market.
I am convinced that we are at a stage where the big institutional investors, who are only now really seeing the potential of this market and who have lost the opportunity to buy when the price of the major currencies was derisory, are slowly entering and lowering the price to enter the market at the lowest possible price.
However they know that the price can not fall back to the starting prices as this implies the risk of the market in general losing all the credibility it took a long time to create.
They know that Bitcoin (just to give an example) can not in a single year go from a few dollars to 20000 dollars and again to a few dollars.
They know that if this happens it will take a long time to make the market credible again in the eyes of the general public.
So this fall, artificially driven by large futures investors has a limit. I would say the minima are close and those who accumulate now will soon (months, or a few years) have huge gains.
Do not despair and wait patiently. Accumulate now, whether the 5000 or 7000 prices are on balance.
This strategy is not for the day trader. In the end who accumulated more will be who will win more.
Sorry for my English which is not my first language.
Cheers !!