Like I said in January, I expect all bull markets to be met with some strong selling pressure at resistance levels due to "bag holders" who are looking to get out at higher prices. This is exactly why I closed most of my swing trade long position in between ~$585 & ~$660.
There was a nice short opportunity last night on the break of the bull flag, but I didn't catch it because I was on a train in Italy.
So far, the bull trend still looks "healthy", so we could see higher prices, but I'm expecting more consolidation and maybe a deeper pullback before going higher.
Fundamentally, there's sold silk road news that could add extra selling pressure to the markets.
Chris, were obviously going to retest 550 in the next 72 hours do you think it will hold a second time? Seems everyone is worried about the June 27 SK auction which is laugable bcse its rather positive. I am looking to buy in 50% and then 50% later on when it dips to 520 if it ever does.
Cuda
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Chris, thanks for taking the time to share your insights. I have been doing some swing trading on BitStamp but you cannot short on their exchange since its not a trading platform as such I guess. Can you recommend a platform for short selling Bitcoin as well? Thanks Jon
ItisCalvin
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Bitfinex has short trading along with margin and swaps.
I've been using Finex for a while and find it to be great. Plenty of liquidity and I love putting some money towards swaps. If you don't know what swaps are they basically provide someone else with money to trade on margin. Very low risks in losing money since if the position turns against them Finex will eventually close it.
Cuda
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ItisCalvin, thanks for the info. I will try over there.
None of the Bitcoins from the SR have been sold. THey are all being moved into blocks of Bitcoins for the auction.
drbooty
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Chris,since you cant be creative with bitcoin investments< such as spreads or options, are you just buying low and selling high? or do you have other suggestions? Thanks
chrisdunntv
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ya, directional trading is my only strategy right now until it becomes a more liquid and mature market.