Bitcoin reverses out of key support zone on MASSIVE volume

in bitcoin •  7 years ago  (edited)

I'm calling it folks - the bottom is in and I'll gladly eat my hat if it's not!

On that note, I was far too early with the last call - picking bottoms is not just a mug's game - it's a dangerous game, especially when you're playing with margin! On the other hand, I was far from certain the other day and sized my longs accordingly - if you are going to pick a bottom, at least leave yourself some wiggle room - still holding my long from 8600, safe and sound!

So why am I confident enough now to put some more reputation on the line and speak with certainty? Well we had a solid reversal candle yesterday on MASSIVE volume - 193 000 coins changed hands at Bitfinex alone. We haven't seen volume in BTC terms like this since November 2015:



Bears pushed the pair to new 2 month lows on Tuesday, but were firmly rejected, with bulls taking charge and pushing out a Bullish Hammer/Piercing Line reversal candle from key support:

Initial resistance is the 61.8 Fib at 7800, with a break above there opening up the path to 50% of the historical range around 10K. Support is the 6150-6545 key support confluence zone; marked by yesterday's low, the rising trend-line from before the ol' girl went parabolic and the November swing low.

Below there and we are in for a world of pain - I will not be able to paint a bullish picture if 6150 goes. We could find support at the 78.6, but the pre-parabolic trend would be broken - no two ways about it.

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@bulleth I sure hope so, this has been a crazy last few months. First it hits 20k then 7k. What a roller coaster I'm in this for the long haul and just purchased some Trinity token. Appreciate a follow back if you like crypto and lifestyle videos.

According to the firm Autonomous Next, the number of hedge funds investing in digital assets like Bitcoin has grown rapidly to more than 100. Since the launch of Bitcoin Futures on the Chicago Mercantile Exchange in December 2017, it shouldn’t be a surprise to anyone why the price of Bitcoin is down 50% from the high.

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Only Retail Investors chase price and buy high and sell low, while the Professionals buy low and sell high. The Hedge Funds have purposely sold Bitcoin futures to get in a better price.

At the moment, there is a war taking place between the buyers (Hedge Funds) and the sellers (Retail Investors) called capitulation. That line in the sand was at $9000. Capitulation is when investors give up any previous gains, by selling, in an effort to get out of the market. Capitulations are outcomes that result from the maximum psychological and financial pain that can be endured by a group before throwing in the towel. The Retail Investors are throwing in the towel after seeing a more than 50% correction in the Bitcoin price to the buyers, the Hedge Funds. With 100s of millions of dollars to invest, we are witnessing an accumulation phase by the Hedge Funds between $6000 and $9000.

The Hedge Funds are loading up and buying from the Retail Investors. But to fill all their buy orders, as the sell orders dry up, price must go down to the next stack of sell orders. We are approaching what I believe will be the bottom of bitcoin at $6000. My first target is $12,000 and my second target is $17,000 over the next 3 - 9 months.

The easy money has been made over the last 12-18 months. With the big boys in the game now, the rules have changes. The question is, are you ready to play to win with a new play book?

This post is my personal opinion. I’m not a financial advisor. Do your own research before making investment decisions. By reading this post, you acknowledge and accept full responsibility of any gains or losses.

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  ·  7 years ago (edited)

Couldn't agree more. I come from the FX world where you have these guys fucking you on every set up. I'm not saying I played this perfectly (I actually posted a bullish tech right at the top and did not at all see a correction this deep), but I did exit my levered CFD longs on the way up around fifteen. I also warned people that things were going to get tougher when the big boys came to town, as did my colleague from the forex world @furious-one ... most were very dismissive of the notion.

Investment banks don't play nice, hedge funds don't play nice, LPs don't play nice and real trading is a shit fight compared to the 2017 crypto rally. Top comment, hope to read a few more!

Completely agree with you. Now we have a deal with professionals. They play hard and the real trading in crypto world will begin from this starting line forming in passing few days. They will try to push again and its possible that we can move a few stairs lower. But this is it I think also. The following of a big stream can be started by us smaller fishes.

Great explanation. Too bad the market is mostly made up of many weak hands that just FOMO'd on Bitcoin last December. The smarter HODLers were outnumbered. With the entry of the big boys, I think the charts can be more predictable now? BTC was defying TAs before huge volume of money entered the market.

Crypto market has been crazy recently and its painful to see your holdings going down so thanx for sharing and hopefully things will improve now. One thing is for sure that patience is the key during this long and bumpy ride.

I feel like weve reached the bottom also this time because we got the volume support this time. Great post. 👍

Thanks mate!

This sounds absolutely awesome for the entire world of cryptos! Thanks a lot for sharing this extra positivity with us all. Many need it right now! ;)

Namaste :)

Totally, fingers crossed I'm on the money. I rarely say anything with certainty as I'm wrong half the time, but I'm really liking the look of that reversal candle!

I think you might be right and I hope you are. I said after the last low we might get 1 more and the big reversal on huge volume could be the final capitulation low we've been looking for.

Sure hope so dude, things have been rough lately - SBD least of people's worries!

Not bad thanks for information

Wowo,, calling the bottom, that is massive.. My guess was down to 4000 but I hope you won't have eat your half...

can bitcoin will reach 30000$ end of this year

The rule is to hodl or hodl. Always hodl no matter what. The cryptomarket is planning and preparing to shoot up. Only those with strong hands and smart enough to buy now,will reap good profits.

I can't believe people are still saying this with a straight face after a 75% decline. If you have been HODL'ing, you are sitting on a 75% drawdown right now. If you're comfortable with that, then fair enough, but that is far beyond the average investor's risk tolerance and it is the exact opposite of good trading/investing.

I just bought the mother fucking dip off this intraday retest:

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That zone is also the higher time frame support/resistance zone that I think if price can get back above, then we’ll rip hard.

Hahaha we already discussed both buying more today, but literally bought the exact same spot/time!

Fuck’n ay.

Ya I agree. If it goes below 6150 that would really hurt the market.

Excellent very interesting and good information good friend thank you I invite you to support me with a vote, greetings

Brought a smile to my dial this post did, especially when reading about the big volume. It's been a brutal smackdown and as @rollandthomas has said, it's flushed out those retail players who have capitulated at their maximum psychological and financial pain thresholds.

I'm happy that I unloaded a lot of my holdings into cash as the rollover got started but did hold on to a core position. I've been dipping the toe back in and can be more confident in doing so now that it's a @bulleth approved course of action!

By the way mate, you don't have a hat do you? 🎩

Bitcoin showing very strong resistance though altcoin too look stable. I am just waiting for the shot up. Let's see how much more time it take. I think 3 month is sufficient for bitcoin to stable and shoot to the moon. I am in huge loss and just waiting for rising. Thanks @bulleth for nice article.

Nice to meet you. I first started to get into steemit. I'll follow you. Thank you for a good article.

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