Still, first let's look at the bottom:
- From ATH to neckline was a drop of 7250; target is 100% retracement to 5.5k.
- From the bull trap to the drop of $7750; target is about 3k.
- From the second to the drop of $3640; target 5.7k.
We now have FINALLY some . This means we're in the capitulation phase. Realistically we may expect the bottom between 3k and 5k.
In my mind, there's no doubt that the whales have overplayed their hands & lost control. The bubble is burst, and the depression will take some time. It won't bounce off like before.
Now, what have I done wrong?
1. On Dec 23, I posted that bitcoin would crash. However, I mistakenly thought my BCH wouldn't be affected as it was supposed to be the "cashening" moment. It was very obviously a bull trap & correction was coming.
2. On Dec 28, I posted that bitcoin would crash after reviewing the long-term chart. I already sold almost everything. The chart was self-explanatory.
3. Beginning of Jan, I continued to be , but the market went UP! Now I see it's because I looked at the chart too much & lost the big picture. I BOUGHT BACK 2/3.
4. Then I saw the sentiment of the market, and thought BTC might not be a systemic risk. I BOUGHT BACK 1/3 IN SHITCOINS.
5. I also found some "triple insurance" that BTC wouldn't fall even though it looked like it was going to 7k. I OPENED TWO LONG POSITIONS ON MARGIN.
6. Last straw, I saw the two rising & but hoped for no kaput. I DID NOT SELL.
Now I'm as fucked as everyone that has a bagful. But what's the lesson?
- TradingView is a social media platform. People are looking for confirmation. Many "experts" here are just cheerleaders who hardly know anything more than you do. Don't believe in their posts.
- Read the chart & be patient. What the chart tells you may not turn out immediately. It's very hard to time everything.
- Be very careful with margin positions. Close 95% when it goes bad immediately.
- Supposedly there's a lot of manipulation going on, but in retrospect the chart is very clean.
- FAK fake news media & shills.
The interesting thing is that now we may also have a stock market crash that didn't happen in 2014. Where will the hot money go? (I hope to my exchange :D)
Can't think right now. I'm depressed. After this is over I'll stop using my bitfinex account. Ever since I started there it's been a streak of bad trades. Three problems with that exchange:
- Too many bots. Some of them may be there to prevent flash crashes, but who knows. Whenever you put in an order these bots creep up. The order book is distorted.
- Their coins are old news. When coins get listed on their exchange, they've already been pumped 1000+% elsewhere.
- Even though I think it's pure FUD, there's always a FUD linked to it.
This source of fake news in the end writes that PBOC bans access to overseas exchanges. Basically it means that Chinese banks can't deposit CNY to these exchanges. Then make this title and spin it like it's the end of the world ban.
Some people are extremely vile & evil.
I'd say to really confirm we should go to 9k then fall to 8k then break the 9k neckline with volume (inverted H&S). Then we can know for sure that the market is ready.
The volume in the last few hours has been higher than during the drop. This is a good sign. More people start to think this is the bottom & opportunity for entry. At the same time, on the hourly chart it's overbought now. If the crash is stabilized, in a overbought condition the price trades sideways or drop slightly. In a crash, we've seen brief bounces that were very short-lived.
They say ICO is securities while coins are commodities + currencies.
Hope that the crash can stop now.
btw, the stock market is crashing now. Monthly RSI fell from ATH (extremely overbought). This will be an interesting time because hot money needs to go somewhere.
Now is the moment to do some adjustment in portfolio. There's of course still downside risk.