The End is Nigh for Bitcoin - Part 2
In yesterday's post "The End is Nigh for Bitcoin" I said the battle will play out this weekend between the bears and the bulls. Well, the skirmish started Friday evening with a huge bull spike that turned into another Bart haircut. This morning I woke up early after smelling beef roasting on the barbecue. After wiping the sleep from my eyes, I saw the bears were grilling steaks on the barbecue for breakfast. (It wasn't a pretty site for those who were long)
The whale must be a Simpsons fan because Bart's head is drawn throughout this battle of supremacy between the bulls and the bears. I redrew yesterday's chart for 30 minutes so the price manipulation is more apparent. The whale uses large volume spikes for 2.5k buys followed a few hours later by 2.5k sells throughout the month of July. This is used to trigger stop losses by shaking loose BTC from the weak hands. You have to have nerves of steel to trade overnight without stops in this field of battle, especially if you are leveraged.
What happened overnight? The price fell through the red trend line that formed way back on April 1st. The price needs to get above this trend line if it has any hope of being bullish again. The price has also fallen below the 0.382 Fib level. We are also back in the green channel, headed downwards. Even with all of this carnage, the price is back to where it was on July 18th. In this manipulated market, I feel all of this hope and despair is used to unnerve the amateur trader into giving up. There is no other reason to spike the price up by $500 to entice in the bulls, and then to spike the price down a few hours later.
Unless BTC shows some form of strength by moving above the 0.328 Fib level and the red trend line, we are headed to the support zone at 8k to 8.5k. This will be confirmed if the price makes a new low for July so watch to see of the July 17th low of 9251 is broken to the downside. If this happens, I may want to do laddered buys all the way down to 8k. Will it drop more than 8k? Only if we get a black swan event like Tether or Bitfinex being charged by the NY Attorney General which will send the BTC price plummeting for a couple of weeks. In the long run this will be a good thing because most exchanges are as crooked as a dog's hind leg as my granddad used to say.
Please hit the like button if you like this analysis.
As always, this is not investment advice. Please do your own due diligence when buying or selling crypto currencies.
The whale must be a Simpsons fan because Bart's head is drawn throughout this battle of supremacy between the bulls and the bears. I redrew yesterday's chart for 30 minutes so the price manipulation is more apparent. The whale uses large volume spikes for 2.5k buys followed a few hours later by 2.5k sells throughout the month of July. This is used to trigger stop losses by shaking loose BTC from the weak hands. You have to have nerves of steel to trade overnight without stops in this field of battle, especially if you are leveraged.
What happened overnight? The price fell through the red trend line that formed way back on April 1st. The price needs to get above this trend line if it has any hope of being bullish again. The price has also fallen below the 0.382 Fib level. We are also back in the green channel, headed downwards. Even with all of this carnage, the price is back to where it was on July 18th. In this manipulated market, I feel all of this hope and despair is used to unnerve the amateur trader into giving up. There is no other reason to spike the price up by $500 to entice in the bulls, and then to spike the price down a few hours later.
Unless BTC shows some form of strength by moving above the 0.328 Fib level and the red trend line, we are headed to the support zone at 8k to 8.5k. This will be confirmed if the price makes a new low for July so watch to see of the July 17th low of 9251 is broken to the downside. If this happens, I may want to do laddered buys all the way down to 8k. Will it drop more than 8k? Only if we get a black swan event like Tether or Bitfinex being charged by the NY Attorney General which will send the BTC price plummeting for a couple of weeks. In the long run this will be a good thing because most exchanges are as crooked as a dog's hind leg as my granddad used to say.
Please hit the like button if you like this analysis.
As always, this is not investment advice. Please do your own due diligence when buying or selling crypto currencies.
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