Market Update: OmiseGO (OMG/BTC) - Looking Overextended, Buyers Beware!

in cryptocurrency •  7 years ago 

OMG/BTC

  • OMG is struggling to stay above the peak of its uptrend channel
  • Bearish MACD Divergence
  • Price to most likely retrace towards local support at 261,800
  • Major support area at 180,000 - 195,000 to be targeted if price breaks below channel

Expect price to retrace a little and form a new consolidation pattern before retesting highs
If price breaks above 285,000 (resistance) game on again for the bulls

Bearish MACD Divergence (purple)


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OMG is struggling to stay above the peak of its uptrend channel
Bearish MACD Divergence
Price to most likely retrace towards local support at 261,800
Major support area at 180,000 - 195,000 to be targeted if price breaks below channel

Dont worry about Omg, it will cross 400000 bits in this month only.

"If price breaks above 285,000 (resistance) game on again for the bulls"
Trading is a game of probability, not of hope. I cover both sides

I think the mood of the market drives the price more than probability. I do think the crypto market is less manipulated than the stock market (which is a good thing). But these wild swings don't make sense. Some do as the large drop after China clamped down on crypto trading. But I think your smart to cover both sides (hedge your bet).

They say the charts are a reflection of human psychology, which is in agreeance with your first sentence, but note it is this psychology which impacts the probabilities.

They are less manipulated because there's less money circulating in crypto so that's also true, but manipulation still well and truly exists. Plenty of times massive sell walls have appeared to shake out weak holders.

Main thing to note with crypto is it is a directional market (wants to go up), same with shares. So eventually OMG's price will most likely reach a higher value regardless. But why buy high and hold through a downturn, when u can buy at support and then hold as it climbs? Depends if you're a trader or investor

Good points. Especially your point on the size of the crytpto market. Similar to the silver market, that's why (not so true lately) they could make a 'fat finger' trade and dump a million contracts (shorts) on the 'paper' market and the price would plummet. The reason I said not so true lately, is because the last two or three days when they did their raid the price of silver held. I think this might be the last hurrah for their game or at least I hope so. As for your statement 'psychology impacts the probabilities', now that I've given it some thought I believe your right on the money. Psychology will steer the thinking of the masses and translate into a mass entrance or exodus of the market. I guess that's why on the whole people buy when the price is high and sell when the price is low. There is a lag period of the mass hysteria to take hold before they make their decision to buy or sell and while they are making up their minds the price is hitting it's high or low point and about to reverse. Very good points. Your view point causes me to think more clearly. Thank you.

Following you, great work!