May 2018 vs May 2019 fractal and the Bitfinex issues
Just yesterday I explained to my users in Telegram how some people are placing high 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 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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