BTC has been on a tear lately. Every BTC holder thinks they are geniuses and are doubling down at these levels. New money is rushing in buying BTC above 7k thinking they are about to miss the train; clear euphoria in the emotional market cycle. As we can see BTC is on a trend which has been uneasy to hold from time to time. We met resistance on the 1.61 fib and have just finished tagging the 2.272 after bouncing off 4 hr cloud support. Where this can go, nobody really knows however 10,000 would be a nice psychological number to break and a good milestone before the rally is over and it also falls on a fib extension, the 3.618. Understand you are at the point of maximum financial risk chasing the price at this point however good places to long would be certain timeframe cloud support or retesting prior fib breakouts as support. Good places to short would be upcoming fib exentions. Make sure you play a stop loss both ways if you are itching to participate in this. Personally I have been staying out of it and instead of cashing to fiat or shorting, I have been slowly accumulating alts as they continue their downward trend and my BTC is gaining purchasing power. You must learn to be unbiased in this game and understand things are never what they seem. When things are really good, understand the bad is coming. When things are really bad, understand the good is coming. Bitcoin was the 1st cryptocurency. It is the most liquid and has all the established infrastructure for fiat to enter in crypto. This is slowly changing however with more alts gaining fiat parities as well as becoming more liquid themselves. Value is created by scarcity however to hold the value, it has to have some sort of utility. Beanie babies and Pokemon cards once had value due to them being scarce however they have no long term utility so that flame died out quick. Bitcoin is a ledger, and a simple one at that. Yes it is scarce but so is any other crypto in nature as well as so will all of the upcoming cryptos be scarce. The difference is Bitcoin does nothing else but be a ledger, however that is the very nature of blockchain tech (an immutable ledger). All of the other crypto's have some sort of utility however whether its smart contracts, true anonymity, data decentralization, computing power, the internet itself, the list goes on. These utility functions as well as being a ledger and as well as being scarce is what will cause them to thrive. Bitcoin's purpose of being a transaction medium and a store of value will become irrelevant because these strengths will and can be found in anything else. Also considering 90% of all the Bitcoins are in the hands of 3% of all the addresses, it is worse then the fiat system it seeks to overthrow, even though without a fiat parity, BTC would have 0 value. It has been an amazing run, but you can't fall into the emotional trap, especially now. The CME derivatives have a 0 chance of approval as well. This space is so corrupt and has so many fundamentals flaws, it will never get a federal stamp of approval like that. The institutions have been in this space and for a while, who do you think is moving the price? This news release is just for fuel to their fire and to bend and test people's will. Understand blockchain tech is the future, most of these alts are still in development and provide much bigger and better usecases than bitcoin has and ever will as well as are technologically superior to Bitcoins archaic and stubborn ways. Anything that has momentum and volume and liquidity is tradeable, even shitty penny stocks at times. When money wants to make money, it doesnt discriminate, and we see that when the shitcoins like XBC pump with 30k BTC volume. Dont become victims to the emotions, play the game smart, curb your greed and try and be a step ahead.
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Once we exhaust weekly stochrsi and it crosses, that should be a good signal to step out.
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Potential short term pivot points to place longs/shorts are
