Bitcoin Technical Analysis: RUNNING OUT OF GUPPIES

in cryptocurrency •  6 years ago  (edited)

Analysis_Logo Resize.png

Looking back on 2018, we’ve seen a series of Guppy rallies. When price dropped low enough, market markets would come in and prop it up. This would spark the interest of retail investors who started buying. Market makers would then sell once they thought retail was done buying. This left “guppies” holding the bag while sparking a sell off. Market makers wold then rinse and repeat. The problem is, this left less and less guppies with each rally...as can be seen on the chart below.

Screen Shot 2018-10-17 at 11.02.25 AM.png

This latest rise in price was due to fears over Tether, as well as a major short squeeze. While shorts got liquidated, longs dropped as well. This tells me retail investors are getting wiser. We’re running out of guppies. Shorts are now starting to stack, while longs remain fairly stagnate.

Screen Shot 2018-10-17 at 11.00.58 AM.png
Screen Shot 2018-10-17 at 11.01.42 AM.png

Price is sitting just below the top of the larger wedge. It’s been respecting that resistance for a couple days now.

Screen Shot 2018-10-17 at 10.58.36 AM.png

In today’s video analysis, I discuss what to expect next, where I’m placing my buy orders, traps to avoid and MUCH more. I hope you find it helpful.

Video Analysis:

If you don’t see the above video, navigate to TIMM (https://mentormarket.io/profile/@workin2005) or Steemit in order to watch.

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!

Workin

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Nice one, Bitcoin definitely at a cross road here.

Thanks Tradealert

Nice detail analysis on the current consolidation area.

Appreciate it Rolland

It's an interesting situation and not as simple as it appears. Yeah the price is toeing the resistance line - on Coinbase. Switch to Bitfinex and it obviously shoots way above it. Look at Binance BTC/USDT and it's once again well above the line.

The guppy rallies is certainly correct, well called. The actions of the shorts does not surprise me, though I am a bit surprised that longs dropped so much and stayed there.

Thanks BB. As far as this last spike, I feel it's fairly simple. Many people ran from Tether over fears of collapse. That means they converted into BTC, which (along with a major short squeeze) caused the spike. That brought in other buyers, which kept the price elevated...even though it almost immediately corrected significantly.
I'd avoid Bitfinex (and analyzing Tether pairing) for the moment until this settles down. I do think we may see another squeeze if longs stay stagnant and shorts continue to rise. Should be interesting.

Hi, in your first graphics i see two wedges, one ascending, one descending, i hope the ascending one is the longterm..... smiles

I'm not seeing the ascending wedge you're referring to.

:-(
I honestly didnt expect such a bleak answer.....

Bleak? Not at all my friend...just not seeing the ascending wedge you referred to...and you've got me curious. ;-) Can you point it out?