BitcoinShort
CME/CBOE Claw Closing
The claw wants to show its nails and close to the Tenken (blue/purple line).
CME/CBOE hype has opened this classic Ichimoku Tenken clamp. Institutional money almost certainly wants the clamp to close before they'll consider buying. The new derivatives will likely be used by high risk traders to pile on the short pressure, but I will not literally be shorting BTC'. I'm too chikun to bet against the mob. Instead, I sit in depressed alts.
Little fish with weak hands will be crushed and juiced as the claw squeezes. This panic could send prices even further down into a multi-month Bitcoin correction, giving alts a chance to pump to the stratosphere as BTC' consolidates.
However, we are in a state of extreme mania, beyond anything I've seen before. I would not be surprised to see BTC' shoot to 30k, or correct to 8k by the end of the year.
This is pure behavioral finance. TA has become much less reliable than it once was.
But, when we see a clamp forming like this, we should learn from the vulture: Sit back, sharpen our talons, wait for the claw to close, and swoop in for the feast when there's blood on the street.
FOR NEW CRYPTO TRADERS / INVESTORS
-------------------------------------------------
The opportunity with best reward:risk right now is in depressed alts, not BTC'. I recommend buying good projects that are are pre-pump lows with respect to BTC' (like SiaCoin (SC)), or are still largely under the radar (like ARK). When these alts pump to the stratosphere, sell them at Fibonacci extensions to refill your BTC' position.
For an example of this strategy in action, check out Frank PM's blog at bluemagic.info/blog/.
Very few traders beat value investors in these markets. A low entry price makes the game much more forgiving, but crypto moves too fast to get super low entries using lagging indicators. You're best using an investment mindset to catch these low entries, researching projects and buying them before the swing traders pile in.
Buy into hate, sell into love.
CME/CBOE hype has opened this classic Ichimoku Tenken clamp. Institutional money almost certainly wants the clamp to close before they'll consider buying. The new derivatives will likely be used by high risk traders to pile on the short pressure, but I will not literally be shorting BTC'. I'm too chikun to bet against the mob. Instead, I sit in depressed alts.
Little fish with weak hands will be crushed and juiced as the claw squeezes. This panic could send prices even further down into a multi-month Bitcoin correction, giving alts a chance to pump to the stratosphere as BTC' consolidates.
However, we are in a state of extreme mania, beyond anything I've seen before. I would not be surprised to see BTC' shoot to 30k, or correct to 8k by the end of the year.
This is pure behavioral finance. TA has become much less reliable than it once was.
But, when we see a clamp forming like this, we should learn from the vulture: Sit back, sharpen our talons, wait for the claw to close, and swoop in for the feast when there's blood on the street.
FOR NEW CRYPTO TRADERS / INVESTORS
-------------------------------------------------
The opportunity with best reward:risk right now is in depressed alts, not BTC'. I recommend buying good projects that are are pre-pump lows with respect to BTC' (like SiaCoin (SC)), or are still largely under the radar (like ARK). When these alts pump to the stratosphere, sell them at Fibonacci extensions to refill your BTC' position.
For an example of this strategy in action, check out Frank PM's blog at bluemagic.info/blog/.
Very few traders beat value investors in these markets. A low entry price makes the game much more forgiving, but crypto moves too fast to get super low entries using lagging indicators. You're best using an investment mindset to catch these low entries, researching projects and buying them before the swing traders pile in.
Buy into hate, sell into love.
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