Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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“History doesn’t repeat itself, but it often rhymes”. We can apply this quote often attributed to Mark Twain to see a parallel between the May 2018/May 2019 fractal and what happened with Mt.Gox and the current situation in Bitfinex. Although the fractal is displayed in different time frames (2018 is 1 day and 2019 is 3 days) the pattern is exactly the same (fractals doesn´t have to be in the same timeframe) and it is pretty much a mirror of the same human behaviour between this and last year. And yes this market like any other else is full of bots, but trust me, big decisions are not taken by machines.
Just yesterday I explained to my users in Telegram how some people are placing high volume short orders at 5850, everybody can see it in tensor charts. Spoofing is a regular procedure in this market, and I won´t be amazed if out of the blue all those orders are gone once the price is about 5600/5700, however it also may play out and we could see a 5800/5900 Bitcoin in a few days. Whatever they are trying to play I´m not in that game. My position in Bitcoin will be long for a few days trying to get the last profits of this upwards trend but I will extreme caution once we are around 5500, since I want to be inside of a short trade before the bull trap happens.
Regarding the SEC and Cryptos, things are getting even more ugly. The SEC has suspended operation in Bitcoin Generation exchange, this is what they said "Due to concerns about the accuracy and adequacy of information in the marketplace, surrounding its outstanding common stock, promotional activities and the impact they had on the market, as well as the company’s current financial condition. The commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company." The SEC is also accusing Bitfinex and Tether on participating in a cover-up to hide the loss from Bitfinex customers, around 851M, under the SEC that money was lost, stolen or absconded. We never know how long this Bitfinex thing could take and what is going to be the resolution, but it called my attention that the May 2018 fractal is playing quite well and the fact that Bitfinex could shutdown operations in a blink of a eye just like Mt.Gox did.
My expectations for this coming correction are at least the test of the 4k support as I described in the idea that I published last week.
I think the breakdown of the 4k trendline and support will depend pretty much on how bad the things will turn for exchanges and how nasty the SEC will be. With a shutdown on Bitfinex, I´m sure that we will break 3100 and look for new lows, but that´s something that we will be seeing during the next weeks.
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Amazing, see how exactly the next week which is when I forecasted the beginning of the downtrend match perfectly with the 1.618 fibo extension.
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Another beautiful fractal in BCH. I sent the details on how to trade this to my telegram channel.
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Bitcoin performing exactly as expected. This is what I´m expecting now:
Well played my man! Totally agree, the SEC will ruin again what it took years to build.
Coinamic
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@geradomx, thanks! Yeah there will be a lot of FUD due to the Bitfinex issue, hope things get better
geradomx
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@Coinamic, I trully believe that summer will be good for Cryptos, unless something big affect Tether...imagine just for a second if Tether become useless..that´s the end!
Great confluence with the .705 fib line which has served as a mighty support for a long time. I expect an equally strong resistance now that it'll get tested for the first time.
However, Forex traders know how powerful the .705 fib line actually is. I think we're up for a sweet ole dump.
Coinamic
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@boleroking, sure, the trap is set up. They price could even get to 6200 with the shorts closing at 5.8/6k...the dump is going to be even bigger.
MaxHodler
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Nice! It is true that fractals based on history of Bitcoin can give good results
provided that there is convergence with some of the most reliable indicators to increase its probability of success.
An example on one of my publications dating from December 2018 that now includes a Bull Trap:
Coinamic
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@Cryptor07, excellent chart, congrats! The bull trap is going to be crazy, epic short squeeze coming soon...
mr.bergan
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@Coinamic, The short squeeze is imminent (within days)? But not more certain than going long first is recommended.. And is the bull trap later on, or will it follow the short squeeze immediately, being the "2nd. half" f the squeeze? I'll appreciate some clarification.
BTW, I think you are doing a great job! Thank you