Considering we have had a strong break above this pattern, all we need a catalyst to really get this bad boy going. At this summit tomorrow there will be discussion of everything BLOCKCHAIN and CRYPTO. Blockchain is a part of crypto, not the other way round, so they will be separated in these discussions and there are a number of countries that are pro-blockchain and anti-crypto. I expect there to be positive and negative news for crypto and something that is inevitable is regulation. It will probably hurt in the short term but will make crypto stronger later on. Even if the overall reception is 'not bad', I think the crypto community will take it as a plus! We are an optimistic space! However, nobody knows what exactly will happen. I’m going to be listening closely and tweeting as much information as possible.
Key Areas of Importance
Since the bull trap just above the dark red dashed resistance line, we have formed a descending pattern. While retracing towards the , we managed to break upwards from the pattern! The dark red dashed resistance line is the next important level to break. Once we have broke this, there is a high probability we will be going up from here.
A Plan For Each Event
Now the bulls have got their act together and ended wave - e once and for all, we could be forming the perfect scenario. If we break the dark red dashed resistance line and hold prices above here, we could enter a long trade knowing there is a high probability we will succeed. We would be trading the reversal on the right side of the market because of the on the chart (remember: long-term, this has always been a bull market) and if news from the G20 summit supports the bulls then we could see explosive action upwards from here. Also, we have the divergence on the for three lows! I will try to catch the break of the dark red dashed resistance line, if it’s too late then I will wait for a pull back. If the market doesn’t break the next resistance and goes sideways then I will wait for to form before taking action as we may be entering a less volatile phase. If we don't break the resistance and we fall back towards the then I will be monitoring how the market acts at these levels as a strong break down could keep us in a market for a good amount of time longer. In such case I would be short, short, short!
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Argentina (Neutral): Local merchants/service providers are accepting Bitcoin, strong Bitcoin communities, native currency is weak
Australia (Pro): Classed as legal tender, want to carefully regulate, focus on anti terrorism/crime
Brazil (Neutral): Large volume of traders
Canada (Pro): Great place for start-ups, focus on anti terrorism/crime
France (Neutral): Heavy Regulation, worried about terrorism/crime, Pro ICO & Innovations
Germany (Neutral): Heavy Regulation, worried about terrorism/crime, classed as legal tender
India (Against): Heavy Regulation, not classed as legal tender, clamping down and restricting all transactions
Indonesia (Against): Clamping down and restricting all transactions, worried about terrorism/crime
Italy (Neutral): Careful regulation
Japan (Pro): Legal Tender, Careful regulation, hub for crypto innovations
Mexico (Neutral): Careful regulation
Russia (Neutral): Working to legalise and prevent money laundering
Saudi Arabia (Neutral): Religious leader says it is against religion, working on policy
South Korea (Against): Potential ban on trading, full details required on exchanges
Turkey (Pro): Want their own coin, focus on anti terrorism/crime, religious leader says it is against religion
UK (Neutral): Regulation
USA (Neutral): Mixed feelings, careful regulation, focus on crime and investor protection
China (Against): Banned ICO’s and exchanges, clamping down on mining
South Africa (Neutral): Regulation, President spoke positively about crypto
ECB (Against): Believes it could threaten financial stability
This is just an hours worth of research so if you have any extra information you'd like to add then please leave a comment!
To summarise this, we have 4 Pro-crypto countries, 11 Neutral countries (2 of these being UK and USA - big players!) and 5 Against crypto countries!
2 of these are France and Germany who both called for heavy handed regulation however they have acted pro crypto in some ways too so I have labelled them neutral. When it comes to regulation talks (where it matters alot) they could be against.
As you can see from here, it will be a tight call to say whether the overall sentiment will be bearish or bullish on crypto coming out of this summit! We can do nothing but wait and see.
Good luck trading my friends!
Like I said, I want to catch the break-out so as soon as its above this line, I'm in. I'm anticipating a bounce back first but I'm unsure of what magnitude as this pump was heavily influenced by the FBP news. (https://www.enca.com/technology/crypto-a...)
I'll set a stop just below the resistance at $8150 to allow for noise and my target is $9300 as this has acted as support and resistance since 07/01. I see it bouncing here at which point I'll be looking for the next trade on bitcoin.
Good luck trading guys! #imnotafinancialadvisor
I won't be entering a trade here at this level as I want to see some strength from the bulls first. This could've been a bull trap so we should be cautious when re-entering the market. I will update with more info later.
Lesson learnt: Let the market tell you where to put the stop. Place the stop outside a technical area, allowing for noise. If this means you are risking more than you reward, then don't enter the trade.
In this case we could've afforded it! Hey, at least we only lost 2.9%! Let's look for the next trade.
I've drawn out a few possibilities in the chart below. I have labelled them in order of the probability that it will happen (1. being most likely - 4. being least likely)
I wouldn't be entering trades until we know which way we are going. We don't know what about to happen next and at the minute, the crypto space is very sensitive to news which makes it even more dangerous. Keep an ear on the #G20Bitcoin
If anyone has anything to add that they learnt from G20 then please comment below!