Bloodbath - Why not to trust technical analysis on Crypto
I was posting a while ago the scenarios for Buy and Sell, based on simple chart pattern, the Ascending Triangle.
This pattern has the standard expectation of price continuation, as in the BTC given example, or a fail of it, a bearish move.
The price failed to break to the upside, and continued down aggressively.
If you have catch this trade, then congratulation, but now the big question is:
WHAT TO DO NEXT?
Volume Profile, the settings are on weekly period, with delta volume, or uptick minus downtick. You can see that every price segment is red, meaning that there where more aggressive sellers than passive buyers.
And now with the massive sell of from last days, will you trust your technical analysis?
I just want to point out something.
Even though Cryptocurrencies are made to be decentralized, because of the market cap extremely small, 1 trillion, it is still very easy to be manipulate. If you think that compared with Forex trading volume of 7 trillion daily, crypto is still a baby with 43 billion last 24h.
So why a single address, sold 100 mil of Bitcoin last days?
If you where a whale, buying BTC at 16,000USD, after a roughly 60% increase, at 25.000, you will sell in profit when you see BTC going under 24k.
Why? Probably you think the rally is over, and you want to wait for another buy opportunity under 20k.
Don't Stumble Trading. Trade Safe!
This pattern has the standard expectation of price continuation, as in the BTC given example, or a fail of it, a bearish move.
The price failed to break to the upside, and continued down aggressively.
If you have catch this trade, then congratulation, but now the big question is:
WHAT TO DO NEXT?
Volume Profile, the settings are on weekly period, with delta volume, or uptick minus downtick. You can see that every price segment is red, meaning that there where more aggressive sellers than passive buyers.
And now with the massive sell of from last days, will you trust your technical analysis?
I just want to point out something.
Even though Cryptocurrencies are made to be decentralized, because of the market cap extremely small, 1 trillion, it is still very easy to be manipulate. If you think that compared with Forex trading volume of 7 trillion daily, crypto is still a baby with 43 billion last 24h.
So why a single address, sold 100 mil of Bitcoin last days?
If you where a whale, buying BTC at 16,000USD, after a roughly 60% increase, at 25.000, you will sell in profit when you see BTC going under 24k.
Why? Probably you think the rally is over, and you want to wait for another buy opportunity under 20k.
Don't Stumble Trading. Trade Safe!
Comment:
Comment:
There is a chance for the price to fill the low volume area, up to 23k, following another fall probably. If the price breaks under 22k, than we might see the price hitting 20k.
