Hi friends! Let's take a look at Bitcoin! If you remember from my last post, I said " If you'll notice, the 50 EMA (in orange) is quickly falling toward price action. Judging by how resistive the 50 EMA has been, the odds are that it will continue to put any attempted rallies in check." looking at the four hour BTC chart, we can see that there has been another failure at the 50, exactly as anticipated. Now, it will be important to see if the blue bear flag breaks to the downside. Currently, we can see that the bottom of the bear flag is being tested, so a breakdownd seems imminent. Also, the MACD is beginning to roll over, as sell-side momentum returns to the market, increasing the likelihood of a break to the downside. Don't forget people, the trend is your friend, and we are in a bear market! Until the bull returns, the highest probability trade is to the downside. Since I know that the trend is my friend, I know that the upside will be limited — until I am proven wrong. Remember, people who try to catch the bottom of a bear market, usually get destroyed as the market continues to fall. People who trade with the trend, are usually only wrong once, and that's when the trend confirms a reversal. With that said, don't lose sight of the fact that we've just confirmed the "heavy resistance" level as the ceiling. Going forward, watch to see what happens in the blue bear flag . If BTC breaks to the downside, the formation of a lower low would be highly likely. However, a break to the upside, particularly above the 50 EMA, would be reason to reassess the possibility that we may have formed a higher low. A break above the heavy resistance level would be a very good sign. However, a confirmation that the bear market is over, will likely come from a sustained breakout above the rising black trendline . Remember, this market is different than it used to be. It is now heavily traded by institutional investors, who are generally more sophisticated than the average crypto investor. They want easy money — and that easy money is currently being made on the downside.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Bitfinex has been supporting BTC at 10k with printing USDT.. It seems like they dont want it to fall early so that it could recover before BTC Futures expire.. Im expecting a dump today/tommorow and after that a good rise.. Thanks for knowlege MagicPoop.
@Nullv, its true, bitfinex funds of tether, some washing going on behind the scenes. same shit as MT GOX
Nullv
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@PeterTrubetskoy, Yes, i also think tether is the shadiest player in the crypto space, and if things do prove that way, it may burn a hole through the market for quite a while. but i always like to take such things with a grain of salt since there is no actual evidence, that's why i asked for source/proof.
dinopiccinin
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@Nullv, Tether makes me nervous, so I used BitUSD on the bitshares exchange. Like tether it's 1:1, except it's actually backed by BitShares locked in collateral. They cannot be created.
skulljuice
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@dinopiccinin, is there a way to generate your bitshares password offline? It seems hackable the way it is.
dinopiccinin
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@skulljuice, No you can use a local wallet to be even safer. It's only hackable if you use the cloud wallet which generates your master key on the spot. Even then good luck brute forcing a ridiculously long passphrase/password.
skulljuice
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@dinopiccinin, the Bitshares cloud wallet key is displayed on your screen when its generated online. Every time you trade, you have to enter that unencrypted key. That was my concern, as those are both vulnerabilities that don't require anything more than a screenshot hack. I generate all MyEtherWallet keys offline on an air-gapped computer.
skulljuice
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@Nullv, the honchos of Tether/Bitfinex are well known. I, too, am suspicious, but I have a hard time believing they would pull such a monumental scam, that could decimate cryptos, since they aren't anonymous. It's intriguing.