Hello traders,
Support on the daily held. Oddly enough for such a critical day for Bitcoin yesterday volume is actually was actually weak with 3,925,900,000 Billion.
Market capitalization keeps taking a hit.
1 week - -$17.56B (-6%)
-$88.02M Overnight.
For me to take no long position yesterday it wasn't worth the risk to reward ratio. Why would people who didn't want to buy bitcoin at $7200 want to suddenly buy Bitcoin now at $7200? Some ideas in the CryptoSpace do not make sense but the market makers might push there to trap other investors. We have to identify the facts here. The retail investors are all but near burned out besides us on trading view. The exchanges are traded with bots by those with large enough amounts of money who can buy both sides of the order books and I know some of them and others who run exchanges who secretly send massive buy orders to hit when we should fall to liquidate shorts. (Which caused us to get here from $6.8k) These are not conspiracy theories. These are facts, we are in a completely unregulated market because soon as we get regulation it means validation. What these market markers do is squeeze money out of smaller investors on a daily bases to steal your money is their job. Unless you are a margin trader or a long term investor the trading strategy of running in and out of alts hoping you beat the next guy within a 1 hour time frame its not a valid trading strategy at least not to me.
Right now I'm looking at a triple top coming up that we need to break through and we may but I have to be honest with people here. I don't think the bottom for bitcoin is in yet and I would short the top however far we go, I will take that trade.
My question looking forward is where are the buyers? So far we have seen no new money enter the market ZERO. Just same money and less of it since the 20k fall washing back and fourth while it takes other traders money away from them on the way to the bottom before what is hopefully a full trend reversal.
Do I think this is a trend reversal today? No... and let me explain further below.
Yesterday I found this a no trade zone and not worth it to me. Either the support on the moving day average/daily/61.8 fib held or we got wrecked. (I am a trader, I do not HODL anything. I will wait for confirmation and make money on a daily bases that can be replicated on a daily bases) Looking back my past ideas I believe them valid that the bottom is not in yet long term for bitcoin. The news was very positive for the past 48 hours and as fast as it turns positive it turns bearish. Take a look at the Starbucks accepting bitcoin which has now been retracted.
We are still in the early adoption stage of bitcoin and a massive amount of infrastructure needs to be built out for large scale companies to accept Bitcoin, laws on taxable events also need to be clarified and straightened out along with regulations. Now do believe Digital Currencies will provide a valid means to store value and move it and that the Blockchain is a viable means for smart contracts to eliminate middlemen that answer is yes but the fact is we are not there yet. The retail investors who initially bought into Bitcoin have nearly all been burned out on good news or are waiting to sell out of the nightmare they bought into at $12-20K without a stop loss because of news about a bank accepting XRP or other stories and list goes on. To you retail investors left out there who keep losing money, sending me message, let me tell you this, in a Bull Market you can make so much more money than trying to scalp these small bounces and praying you get away with someone else's money before another fall... it wont work out well for you unless your doing solid TA 24/7. Which people in our community do who make money on a daily bases some post 100% margin returns because they play the market both ways. So now you who do not know what your doing either you HODL or you don't trade or you get eliminated or you learn.