I follow some choice crypto trading youtube videos and I feel deeply that many of them are failing us. Fundamental concept for price action: when resistance and support flip be prepared for a powerful move. A trend reversal.
One prefered trader covered this concept this week, but instead of looking at a multi-year trend they are looking at a month long trendline. Another generally good trader called this move a "beautiful correction" and ignored the fact that tension with China is on the rise, civil unrest in the US is on the rise during election season, and COVID19 numbers are going up. The same thing that tanked the SPX, and XBTUSD, and caused unemployment to skyrocket is still a exogenous shock to bitcoin. Many others pretended that they had covered this reversal as their majority opinion as opposed to their casual cover their ass throw away statement.
Crytpo is a peacetime inflationary asset, not one you buy during turmoil and potential real world depression/contraction. We don't have beautiful corrections during these times
The OBV is bearish divergent. The MACD is decreasing and the MACD histogram is showing hidden bearish divergence. Price action is stalling at the Upper Value Area. All this at a time when previous support is now resistance and we have turmoil in the real world. How many different bearish indicators do we need?
Here is BLX, the chart with the longest history on bitcoin, with a pair of simple volatility stops on the monthly time frame. Now believe you me, when I see the Vstops on BLX flip to bullish I am going to be changing my tune. Until then, my bias is short.
One prefered trader covered this concept this week, but instead of looking at a multi-year trend they are looking at a month long trendline. Another generally good trader called this move a "beautiful correction" and ignored the fact that tension with China is on the rise, civil unrest in the US is on the rise during election season, and COVID19 numbers are going up. The same thing that tanked the SPX, and XBTUSD, and caused unemployment to skyrocket is still a exogenous shock to bitcoin. Many others pretended that they had covered this reversal as their majority opinion as opposed to their casual cover their ass throw away statement.
Crytpo is a peacetime inflationary asset, not one you buy during turmoil and potential real world depression/contraction. We don't have beautiful corrections during these times
The OBV is bearish divergent. The MACD is decreasing and the MACD histogram is showing hidden bearish divergence. Price action is stalling at the Upper Value Area. All this at a time when previous support is now resistance and we have turmoil in the real world. How many different bearish indicators do we need?
Here is BLX, the chart with the longest history on bitcoin, with a pair of simple volatility stops on the monthly time frame. Now believe you me, when I see the Vstops on BLX flip to bullish I am going to be changing my tune. Until then, my bias is short.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
