A trap was sprung... 馃槻Today the bitcoin bulls were dealt a heavy blow, one that many may have felt, but few understood. What I saw unfold today semmed to have a professional twang to it, with millions of dollars pushing the strategy. Was today's move a strategy by institutional minded traders to train the line of resistance for the next pump, or a mass un-collaborated impulse buy by traders fed up with losing their account value for so long 馃槕...Was this a battle tactic? Perhaps a type of guerrilla tactic..it works..just ask Napoleon if you don't believe me. Geurrilla warfare started the demise of his empire. Forgive me for straying off topic, that is a story for other day. This rapid move came with a high probability that it rekt both short positions and long positions, occurring all within roughly a 30 minute play. Bitcoin shot up to a 7700 range , before plunging back through the bottom of the 0.618 line, from whence it came. To finish the flavor on the cake, this move would had allowed the ones who pushed it down to make a handsome profit simultaneously, as they exited the market. This is a plausable and the most likely scenario.
The Psychology Continues
馃Who would had thought to go short after a 3 day battle to break the resistance had appeared so successful with such a strong push. Time to jump in, but wait! When the candle closes and all that remains is the most bearish candle since the fight to conquer the 0.618 began, then what could that mean to the minds of many new and intermediate traders ? It will indeed serve as an ugly reminder to what happens if you take another short when we bounce back. Just look at it.. Sure 2 days of clear reversal of the uptrend were present. Those who entered short were stopped out. Those who went long fell short. Could it be now that far few players will dare to play the bear game the next time we make another strong run towards the line. Will it then serve as a reminder all the way up past the next as well? Will this pave they way? So many questions..one thing is certain , shots fired!! This was heard around the world today. On the grand stage, at the golden ratio a clear statement was made..
My Grand Conclusion
We have had some great moments in July. I believe today's, makes a statement. Bitcoin just isn't ready to be the champion that it truly is. That time is soon coming though. Too many advancements in the cryptocurrency space have been made this year alone and we are preparing to hit another gear. With all our advances in technology, my spell checker still thinks cryptocurrency is spelled wrong. If it is I apologize馃槀馃槀...So look at this pattern, what do you see? We broke the neckline on the 1 DAY CANDLES and up we gooooo!!
These are my feelings and own opinions. I win and lose trades, just like you. Please be careful in the markets and as always... Do your own research and invest wisely!!
