Bitcoin Market: Is this a Sucker's Rally?

in cryptocurrency •  7 years ago  (edited)

Hi traders, is this Bitcoin rally yet another dead-cat bounce or are we witnessing the dawn of a new market cycle?

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Bitcoin.

  • My current trading strategy works under the assumption that the massive sell-off caused by a mixture of tax-season, regulatory FUD and bubble-bursting price action have brought us back at to the point of maximum financial opportunity. Traumatized retail money is either sitting on the sidelines in disbelief or too broke to jump back into crypto, giving us smart trader a window of incredible financial opportunity :

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  • To me, Bitcoin looks bullish on the daily and the trend is showing early signs of acceleration (increasing volume) which leads me to think that we might tag $10k soon. However, I wouldn't be surprised if we first pulled-back to around $8250 -$8400 before we continue moving to the next price node;

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  • A pull back would be my signal to add to my position as it would result in a very bullish reverse head and shoulders pattern:

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  • Yet, despite my bullish bias, I have started to lock profit in my altcoin trades in case the market decided to prove me wrong.

EOS.

  • Consequently, I took more profit from my EOS trade which pulled a 100%. EOS has a lot of momentum both fundamentally and technically and I wouldn't be surprised to see it lead the alt-coin charge as we get closer to the release of its main-net in June;
    With that in mind I am keeping the other half of my trade as a long term position and will sell only if we see something ridiculous like 1 EOS hitting $100 USD.

  • If you don't hold any EOS but wish to get some safe exposure to this asset, I would suggest you wait for the following scenario to play out before entering into a position (EOS/BTC chart, Bitfinex):

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  • As for my other positions, I am still holding my ZCash until the Sapling upgrade in September and ETH as a store of value.

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nice

Thanks @nasrosman963 :)

Coins mentioned in post:

CoinPrice (USD)📈 24h📈 7d
BTCBitcoin8886.910$1.61%7.96%
EOSEOS11.602$8.35%38.43%
ETHEthereum624.838$5.39%20.21%
ZENZenCash35.300$-1.39%2.53%
ZRX0x0.980$8.98%28.11%

You hit the nail on the head there, we have indeed just passed the point of maximum financial opportunity (don't worry if you didn't buy, it's not too late yet, this rally still has far to go!)

The little dips (like down to the low $8000s for BTC) are always going to happen, but this bull market is now happening for sure! (Just look at the volume for confirmation.)

Hey @bitbrain, thanks for your comment, I've nailed the bottom on some of my trades and now comfortably looking at the market do its thing. Although my bias is bullish I am also locking in profit in case my assumption proves wrong. Cheers :)

Wise approach. I'm still kicking myself for not taking end of January profits as originally planned!

Yes I am in the camp that this is 100% a sucker's rally. Everyone is gung-ho bullish talking about 12K and we haven't even hit 10K yet...

Yeah, that's why I've been locking in profit... just in case this turns into a dead-cat bounce... my bias is bullish though

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