Unfortunately, the people who make the most money are the ones that can initiate huge sell offs and liquidate accounts so they can buy back in cheaper. Unless you get in early enough to be out of danger for this sort of thing its very difficult to day trade BTC for this very reason.
The leveraged exchanges kind of push the market around in market cap, and when a whale on bitmex starts something like this they know they will be able to wipe out a bunch of stops/liquidations so that they can agrressivley lower the price for their re-entry. Its typically not good to catch a falling knife and do like they do. But sometimes I feel like its the only way to stay swimming alongside the whale, because that's what they are doing.
I expect to see bottoming here as price as being bought up, probably by the same people who dumped a huge bag at the top. We could still stay within this trendline but we would have to see aggressive buying at this point to stay within it. This is possible, as our recent flash crashes have been bought up aggressively afterward and sometimes reached new highs thereafter. Depends on how the market psychologically takes this fear, in conjunction of ETF possibilities soon to come.
7700 support should be held and we will probably see a consolidation that ranges from that support up to our highs 8400 for the coming week or more.
This price action technically is completing our bull flag, which most would say this is healthy to come back to these levels for better and more sustained upside movement. But the manner that we got here is not a healthy corrective way.
This was a very insane sell off and I hope you guys stayed safe and used protection.
The leveraged exchanges kind of push the market around in market cap, and when a whale on bitmex starts something like this they know they will be able to wipe out a bunch of stops/liquidations so that they can agrressivley lower the price for their re-entry. Its typically not good to catch a falling knife and do like they do. But sometimes I feel like its the only way to stay swimming alongside the whale, because that's what they are doing.
I expect to see bottoming here as price as being bought up, probably by the same people who dumped a huge bag at the top. We could still stay within this trendline but we would have to see aggressive buying at this point to stay within it. This is possible, as our recent flash crashes have been bought up aggressively afterward and sometimes reached new highs thereafter. Depends on how the market psychologically takes this fear, in conjunction of ETF possibilities soon to come.
7700 support should be held and we will probably see a consolidation that ranges from that support up to our highs 8400 for the coming week or more.
This price action technically is completing our bull flag, which most would say this is healthy to come back to these levels for better and more sustained upside movement. But the manner that we got here is not a healthy corrective way.
This was a very insane sell off and I hope you guys stayed safe and used protection.
Comment:
Ok, just found out it was the Winklevoss ETF denial that caused this to happen. Ah well, so goes riding a hype wave. As far as I know the CBOE ETF is the important one as far as ETF's go so keep your news ears open for CBOE ETF.
