Much is being discussed over Bitcoin's recent hyper aggressive rise. It is beyond any reasonable doubt that it is a strong confirmation that the new Bull Market has started. Backed by strong fundamentals, , more .
It is interesting however to keep in mind how such parabolic movements typically end up. For today's educational idea I have put side by side BTC's current (2019) mini parabola on 1D (daily chart) with the parabolic rise of the previous bull cycle (2015 - 2017) on 1W (weekly chart).
The comparison between the Daily and Weekly parabolic activity is only intended to magnify the results of a potential break of the pattern. Not to offer trading levels. Just to show how emotional trading works and how those emotions should be kept aside.
Before latecomers to the crypto party (i.e. people who bought above 6500) call me atheist (), I need to make clear that this piece of work is a simple comparison of BTC's parabolic behavior. This is one of the most common patterns throughout Bitcoin's history, most specifically during its bull cycles.
To better understand the dynamics of this movement it may be useful to see how parabolas have worked during a Bull Cycle and in particular the last one (2015 - 2017):
We clearly see that when Bitcoin broke a parabolic rise most of the times it hit the 0.618 Fibonacci retracement level. Twice it hit (or almost) the 0.786 level while once the 0.5 level. It is apparent how Bitcoin behaves in parabolas but of course each time can be different in its own way. Especially when heavy fundamentals (i.e. wider acceptance etc) are involved as the current period we trade on.
But your opinion is what matters most. Let me know if the current price action on BTCUSD reminds you of such a parabolic pattern. And if so what are your projections! Hit the comments section!
well, people that are dumb enough to buy at 8k will soon lose all their money.. because they will sell at the bottom in despair as always. what to say.. we are at extreme greed faze of parabola and it wont end well.. never does.
@djolebg, have you ever made a bad trading decision? We all make mistakes.
TradingShot
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@djolebg, The psychology of the market at its finest.
aakeelr
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There will be no mass adoption to some asset class that is in mass quantities (scarce in nature) held by the very few rich who can splash and spill it at their whims and fancies. There will be no adoption due to the fact of exchanges manipulating the prices covering up their laundering activities. The way the elites are creating a magical effect that every human will choke up if they don't own btc today is ridiculous. Dreams of 100k to 500k prices sold to the common man inviting them to speculation is a karmic crime anyways. Comparing it to gold and releasing TV ads this year doesn't make sense either when it was most needed last year to infuse confidence during a bear phase (again personal motive of bary silbert since he has a trust and must be having heavy alt bags his trust invests into) These guys Pompalino, Saifdean, Mccormack, Mcafee, Antanopolous, Murad, Armstrong, Winklevoss twins, Jimmy Wong and likes of all these names, who are they? Since years they have been in a super plan mode to promote this asset class shilling and selling dreams to every single person on twitter taking them away from the current activities of life. I see many people having dreams of making 2 million dollars in as quick as 2 years by just buying btc. DO u guys even think these people, these names i mentioned they are the mafia in crypto run and controlled by much bigger heads who fund them. Bitfinex is running a day light robbery as easy as cutting butter with a knife willfully printing paper tether and priming the prices up. Does this all seem normal to everyone? Leaving a paying job or atleast working with a half willed heart at work and more immersed into crypto are you doing justice to yourself? Why is it now that we are hearing all good news? Why? That ad "drop gold" by Grayscale why didn't it come last year when people were losing money buying the top. Don't u think that was the perfect time to introduce people to bitcoin if adoption was truly the agenda. Nope that time they were dumping their bags at inflated rates upon you at 18k, 15k, 10k and so on. Now when they filled their waters with bags down dumping upon you since Jan till April this was the perfect time to create a full on bull mode so that FOMO kicks in hard. This is exactly what is happening. No one gives a fuck of btc. Even readers of my message won't. The simple reason is that all of us need money to live and not a block asset that appreciates and depreciates in minutes. The fact all of us would want to redeem btc at 100k or 500k so the beleif is still cash out into fiat. Why? U love btc why cash into fiat. If that's the case then fiat pays more importance to btc. Take time think whats happening why its happening and who is playing this game. What is their motive. I'm pretty sure its to sell their low bought bags at higher rates and have u hold them for ages till finally either government shuts this down or btc retraces and eventually fails to act as a currency which in most cases it will.
millert25
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@aakeelr, Your very first sentence could apply to fiat as well. I do agree with you about the tether situation.... there definitely needs to be some oversight there and that will come with regulations.