BTC and the Coronavirus Outbreak (Writeup in Description)
Updated
Since my last two BTC/USDT projections turned out to be right (links below this text) I wanted to share first hand experience FROM CHINA, because obviously the media here is downplaying it while western media is creating FUD. So, how does this affect Bitcoin?
People tend to believe that in times of crisis, Bitcoin will go up. However you have to understand that the situation in China right now is FUD - I mean, like real FUD. The city I live in is the next in line after Wuhan in terms of confirmed coronavirus cases and we already have people buying up whole stores. Food supply as of January 26th is still available, yet getting lower any hour because of people panicking - and preparing for the worst.
Now, most of the BTC market as we know is controlled by Asia, more over China and Japan. Watching Chinese BTC chats over the last couple of days I can say with confidence that more "pullouts" will be coming at around the 8400-8500 mark - big pullouts. If you are Chinese (or a foreigner as me) in China right now, cash is king. Cash will get you a ticket out of a quarantine zone if shit hits the fan. It will get you food and supplies if you decide to stay here. It's that easy. All I want to warn people about is - don't expect China to buy the dips - they will CREATE them in the following days (or weeks if this pandemic becomes worse). A good example is the selloff at 8520 a day ago.
Personally, I am still on my original short from the 9.1k level I posted a chart a few weeks back. If you are not in any position right now, stay out. US/EU traders might buy the China FUD with will lead to increase. However, a price over 8400-8580 over the next week seems impossible because of the #coronavirus . Look up the hashtag on twitter and you will be able to see unbiased information on the topic. But even without the virus FUD, we are still in the downtrend I posted weeks ago - I see no reason to go long here.
To all my Chinese friends, stay safe and indoors and prep good food and water supplies and have escape routes ready.
Good luck and safe trading.
George
People tend to believe that in times of crisis, Bitcoin will go up. However you have to understand that the situation in China right now is FUD - I mean, like real FUD. The city I live in is the next in line after Wuhan in terms of confirmed coronavirus cases and we already have people buying up whole stores. Food supply as of January 26th is still available, yet getting lower any hour because of people panicking - and preparing for the worst.
Now, most of the BTC market as we know is controlled by Asia, more over China and Japan. Watching Chinese BTC chats over the last couple of days I can say with confidence that more "pullouts" will be coming at around the 8400-8500 mark - big pullouts. If you are Chinese (or a foreigner as me) in China right now, cash is king. Cash will get you a ticket out of a quarantine zone if shit hits the fan. It will get you food and supplies if you decide to stay here. It's that easy. All I want to warn people about is - don't expect China to buy the dips - they will CREATE them in the following days (or weeks if this pandemic becomes worse). A good example is the selloff at 8520 a day ago.
Personally, I am still on my original short from the 9.1k level I posted a chart a few weeks back. If you are not in any position right now, stay out. US/EU traders might buy the China FUD with will lead to increase. However, a price over 8400-8580 over the next week seems impossible because of the #coronavirus . Look up the hashtag on twitter and you will be able to see unbiased information on the topic. But even without the virus FUD, we are still in the downtrend I posted weeks ago - I see no reason to go long here.
To all my Chinese friends, stay safe and indoors and prep good food and water supplies and have escape routes ready.
Good luck and safe trading.
George
Trade active
As mentioned earlier, no matter how much money is thrown at 8500 it is being sold exactly as I stated. That just confirms (for now) my theory that China FUD sale is in place. During the last several hours I also catched several big (300BTC+) market buys on Binance to keep the price at this level. The same was (once) reported on Bitmex too. Thats over 2000BTC in market buys, two exchanges - you do your own math and add 2 and 2 together. I'll publish more information on this, proof can be found in the books. All those moves were first a limit order, then taken out the order book and placed as market buy. It makes me believe that exchanges might be behind this, yet I can't prove it (yet).
In the meantime the virus situation is getting worse. In case we don't have any more big market buys I expect the price to go down rather quickly from here.
Trade active
As mentioned earlier, no matter how much money is thrown at 8500 it is being sold exactly as I stated. That just confirms (for now) my theory that China FUD sale is in place. During the last several hours I also catched several big (300BTC+) market buys on Binance to keep the price at this level. The same was (once) reported on Bitmex too. Thats over 2000BTC in market buys, two exchanges - you do your own math and add 2 and 2 together. I'll publish more information on this, proof can be found in the books. All those moves were first a limit order, then taken out the order book and placed as market buy. It makes me believe that exchanges might be behind this, yet I can't prove it (yet).
In the meantime the virus situation is getting worse. In case we don't have any more big market buys I expect the price to go down rather quickly from here.
Trade active
As mentioned earlier, no matter how much money is thrown at 8500 it is being sold exactly as I stated. That just confirms (for now) my theory that China FUD sale is in place. During the last several hours I also catched several big (300BTC+) market buys on Binance to keep the price at this level. The same was (once) reported on Bitmex too. Thats over 2000BTC in market buys, two exchanges - you do your own math and add 2 and 2 together. I'll publish more information on this, proof can be found in the books. All those moves were first a limit order, then taken out the order book and placed as market buy. It makes me believe that exchanges might be behind this, yet I can't prove it (yet).
In the meantime the virus situation is getting worse. In case we don't have any more big market buys I expect the price to go down rather quickly from here.
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