BTC 1H Chart: Studying Parabolic Movements
Traders,
So I'm new at studying parabolic charts and this market, and there are a few things I can see happening. One is that after these pumps, there is a period of distribution & accumulation where the accumulation is extremely strong. Eventually, the bears get tired and the bulls completely overtake them, pushing the price higher. Each time this happens, these periods get shorter, resulting in a parabolic move upwards as we can see here (Do you really need a line drawn for that?).
The reasons for these bullish movements are many, but I think it's primarily because other people see them too and just want along for the ride. There is nothing fundamentally different about Bitcoin than there was one or two months ago, this is a market purely created out of speculation and greed. Each time the pump happens, people tell their friends, they want in too, etc and the waves get shorter. Bitcoin's ever-limiting supply only adds to this.
Unfortunately, this is beginning to look pretty scary for anyone in a long position for the following reasons:
1. Mathematically, parabolas end up just going straight up. There has never been an asset that has done that, and Bitcoin won't be the first. Why? Because you invest in it hoping to make money. You only make money when you sell, if you invest to just watch it go up forever then you might as well light it on fire and you'll achieve the same result.
2. Long positions will be looking to exit soon, as they have made 400% gains or so from the bottom.
3. Lots of people invested in the Bitcoin top back in December 2017, and for non-trivial amounts of money. I'm talking mortgages and the like (seriously, it was in the news). These people have been likely on the verge of suicide and have been waiting for this so they can break even eventually. This will cause tons of downward pressure when they sell, as these were not trivial amounts of money.
4. Since this bubble formed faster, it will end even faster than the last one.
Good luck out there.
So I'm new at studying parabolic charts and this market, and there are a few things I can see happening. One is that after these pumps, there is a period of distribution & accumulation where the accumulation is extremely strong. Eventually, the bears get tired and the bulls completely overtake them, pushing the price higher. Each time this happens, these periods get shorter, resulting in a parabolic move upwards as we can see here (Do you really need a line drawn for that?).
The reasons for these bullish movements are many, but I think it's primarily because other people see them too and just want along for the ride. There is nothing fundamentally different about Bitcoin than there was one or two months ago, this is a market purely created out of speculation and greed. Each time the pump happens, people tell their friends, they want in too, etc and the waves get shorter. Bitcoin's ever-limiting supply only adds to this.
Unfortunately, this is beginning to look pretty scary for anyone in a long position for the following reasons:
1. Mathematically, parabolas end up just going straight up. There has never been an asset that has done that, and Bitcoin won't be the first. Why? Because you invest in it hoping to make money. You only make money when you sell, if you invest to just watch it go up forever then you might as well light it on fire and you'll achieve the same result.
2. Long positions will be looking to exit soon, as they have made 400% gains or so from the bottom.
3. Lots of people invested in the Bitcoin top back in December 2017, and for non-trivial amounts of money. I'm talking mortgages and the like (seriously, it was in the news). These people have been likely on the verge of suicide and have been waiting for this so they can break even eventually. This will cause tons of downward pressure when they sell, as these were not trivial amounts of money.
4. Since this bubble formed faster, it will end even faster than the last one.
Good luck out there.
Comment:
Comment:
Actually not even....45 minutes! We are in for some serious pain!
Comment:
Initiated sell order @ $13625.47. Looks like we have a confirmed top gents. Now comes the waiting game of hitting bottom.
Wave 6 completing now, about 1 hour in length.