Today, Bitcoin made a big squeeze as a result of which perhaps all short positions on Bitfinex and other exchanges with margin trading were liquidated. The current action certainly represents a bull sign in the medium term (months). Even if Bitcoin is destined to go lower (which I strongly doubt), this will not happen today or this month.
Reasons To understand the reason for such a deep correction in Fibonacci levels, it is necessary to understand how the market reacts to such actions. After a big impulse, all the media on cryptocurrency wrote about it. And at that moment the distribution wave (correction) began. At first it looks like a normal correction (symmetrical triangle with a tight range of price action), but then the price begins to fall. Oh my God! This is a bull trap, we are all caught! And people are starting to sell so desirable bitcoins a couple of hours ago.
Gain = Pain Do you think you just expect a profit of xx% per day from the market while ordinary Forex pairs can only give it a few months (well, or weeks, ok). And the market should give you this just like that? Profit in these markets is almost always associated with pain. The pain of holding a position. If you were so sure a few hours ago that it would go up, are your assumptions really so weak that you sell them immediately and at a loss of 10% (and in some alts 20%).
There is no magic moon Before any major run, the market swings for weeks or days. He shakes you to check your hands. Are your hands weak? Then this market is not for you.
How to understand that this market has surrendered and will fall to the hell? Some of you will be asked. Well, it's easy. POC (highest volume level) is at 6420. If the day closes below this level, you will have a reason to worry. In the meantime, an healthy level for the current correction is 6580 (possibly 6650, ok).
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Now going B-wave. Just show updated support targets.
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Moving in triangle
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Current formed triangle end in few hours. Also we have 1H MA crossing. I publish support projection of channel and levels IF we going down. Remember that triangle breakout minimum at self height.
The price has almost reached its support in touching two lines at once - the lower support of the triangle and the upper bearish trend line.
Area 6300 is key to Tether’s support exchanges. If the price consolidates below this area - most likely we are expected to dive under 6000. But the more likely scenario we will play is swing trading from the level of 6300 to the beginning and the middle of 7k.
Why fall on the exchanges with Tether pair more than on the fiat dollar exchanges?
If you have not noticed, the price fluctuations at Coinbase are significantly lower than those at Bitfinex and Binance. The reason is that Tether traded with a big discount of 3 to 6% depending on the exchange.
Probably, in order to eliminate this hole in the liquidity of the exchange, they were forced to lower the rate to the closest possible value to Coinbase. In this way, they could restore the balance of Tether and the US dollar at least approximately.
If you are scared and don’t know what to do (there’s probably someone like that here). The answer is simple - place orders for sale at about 7k and do not look at the charts and prices for the next couple of weeks.
Guys, it's just a matter of time when everything breaks out. On the 15 minute chart, this looks terrible for some. But open charts with a daily timeframe. You will see how tight the price range is now. And in fact, now is the safest time for investments (not trading) in cryptocurrency.
It’s likely that in November we’ll all just see a $1000 race and then we’ll receive a notification from the news site by mail that the SEC has allowed ETF, physical futures or something else has happened. And all the space will flash. Now is not exactly the time to sell, as in 19k for a purchase.
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Another boring update for this market.
* Price moves very slowly near BIG support do you think its signs of strength or weak? * When price moves slowly on highs often it mean the coming falling. * When price moves slowly on deeps what it mean?
Anyway if I were on the short side of market - I will feeling uncomfortable now. This is mainly crowd tactic - buy on 7000 when it strong and sell on 6300 when it weak. Few cycles like this and your bags loss 50% of money.
"Should I sell or buy now?" lol
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Bitcoin create higher low on this week. And its good sign beacause weak market not create lower high near support - weak market sell off quickly this support. We can see few days on this levels between 2 important trend lines. And after this we can see next wave up.
Well said bro- I think the market has spooked so many “weak-handed” traders in the last 8 months that the just assume the worst case scenario in EVERY situation now hence the selling at signs of a healthy pullback before a move back up. There’s just an over lack of confidence in the market right now that frankly isn’t even considering the underlying fundamentals anymore, just “fear”- WEAK. All the best.