Update: BTC - Bearish-to-Bullish Market Reversal

BITFINEX:BTCUSD   Bitcoin / Dollar
We learnt one thing this week:

What a whale wants, a whale gets. (Whales are big/large individual or institutional investors)

It was hard to believe BTC             would hit 8K given demand at higher levels -- but all those whales placing there orders at 8K (despite seeming crazy at the time), knew what they where doing.

We learnt another thing:

That around this time of the year the market is usually bearish . This has been true for the last 4-5 years in a row.

There are varied explanations for this. But one I found interesting was that Chinese investors often take profits around this time to buy Chinese new year gifts.

More reasonably, BTC             has been facing attacks on fronts including South Korea, India and the US -- everything from JPMorgan and Bank of America denying Crypto purchases with Credit Cards (Debit cards still allowed) to Fake news that India was banning Crypto.

To us, it seems like a sustained and coordinated "attack" on Crypto, to get prices down where institutional investors can load up on cheap crypto for 2018 in preparation for the next bull run.

Futures markets (which heavily shorted BTC             ) -- saw a large number of those Shorts now turning to long positions at 8K last week.

We also saw a dramatic drop in Short positions at the 8K levels.


This is yet another big week for Crypto. February 6th: the Senate Banking Committee to discuss the regulatory oversight role of the SEC and the CFTC should be when it comes to cryptocurrencies and virtual currencies.”

Depending on how things go, we could see a huge bounce from this level (Fib .618) into higher 10K+ levels (and further confirmation of market reversal), or a further drop to support levels marked in magenta (5.5K, (Fib.786) and 4.3K) - before the market reverses and starts a new bullish trend .

All things considered, short-term rapid gains are a thing of the past, and anyone looking to invest in crypto/holding crypto must have their long-term thinking cap on at this point (1-2 years).

What's clear is that such drastic corrections in the past have always resulted in huge reversals to new highs for BTC             and other cryptos. We hope it will be the same this time.

All the best!
Thank you Sophiavyn. I am new to CRYPTO and love the theory you explained which makes sense.
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