BTC Don't Blame The Whales - Its Your ShortsWow, trading in crypto currencies is a lot like being in the trenches during a war. Speaking from personal experience you can spend endless hours in the dark and the quiet when nothing is happening and suddenly BOOM it's all in your face. Just as in warfare, some of you may need to check the condition of you shorts after things go boom.
I never trade on margin and today is a perfect example why. Had I been short like so many other people, I would've been rekt, and I know a lot of guys are out there crying in their beer right now. There was massive short interest in Bitcoin prior to this move and it was begging for someone to jump on it.
I was busy doing my normal thing, some analysis and writing on another crypto, namely Cardano today when Bitcoin exploded. I've been mulling over the idea in my head for the last few days about writing an article based on the published news that George Soros has entered trading in crypto currencies. Anyone who knows anything about George Soros knows that he is a ruthless SOB that has no conscience and takes great pride in destroying other people, even his own whom he betrayed to the Nazis. One of the things in Soros long and sordid career is that he is known as the man who destroyed the English pound years ago sending the entire economy of England into a spin for his own personal profit.
Soros has company too, some big traders and funds are entering the market and some of them are also heartless manipulators who tell lies about their own intentions and then trade the opposite. Jamie Dimon, and Mark Cuban for example. Both men trash talked Bitcoin and crypto currency. Both denied they had any interest and immediately after admitted publicly that each of them was buying in the market.
The crypto currency market is undergoing an evolutionary phase where it is becoming overregulated by government entities driven by special interests who will mold the laws and regulations to their benefit just as it has been done in the stock market in the name of protecting the little guy. Particularly in this time when there is very little regulation in crypto currencies, big players like Soros can come into the market and wreak pure hell. They're pretty much undetectable except by one thing. You can usually assume that whatever they say is the opposite of what is about to happen in the market.
We all know the crypto markets have a mind of their own and don't need any help from outsiders like Soros to surprise us at a moments notice. So what is my point in writing this? You should trade intelligently keeping your cards close to your chest and stay the heck out of margin trading. Don't for one second believe 99.9% of the braggers getting rich on margin, when you set up a trade or an investment use cash - have an entry and exit plan.
What's going to happen with Bitcoin next? At this moment based on what's happened the last few hours it's kind of hard to tell. I would watch the resistance levels that are drawn on my previous charts. We blew right through 7400 which I mentioned in another article I wrote this morning before this explosion. Bitcoin touched the area of $8000. I would say there's certainly room for short-term pullback but you need to keep your eyes open for 11,600 as the next upside target. If you were already in Bitcoin this morning when it took off congratulations. For you, I would either take my short term profits or set a stop loss to protect my profits to this point on the day.
I did not have any Bitcoin in my short-term trading portfolio, so this does not apply to me personally but if I had I would've sold out by this time, and taken my profits. However, I've had a nice ride in Verge and Cardano out performing Bitcoin the last few days. See my posts.
Keep a sharp eye on the price range of 7596 two 7804 either for a reversal or a breakthrough. If we get a breakthrough to the upside watch the 8426 price level, and should we get through that I would look for us to reach 11,600.
