Bitcoin Bull Trap? Anatomy of a Bull Trap

Bitcoin Bull Trap? Anatomy of a Bull Trap

We are most likely in the middle of a BTC bull trap. We have gone up 90% without a break and only corrected 15%. We are nowhere near our recent support levels of $14k & $12.3k so our drop is not complete. We need this structure so that we CAN break new highs and have the whale’s blessing. Sophisticated investors know that our trend has changed and they are looking for exits. A good move up is exactly that so expect a good sell off once this pump is over. The upswing will likely last over 24 hours and be over by 72 hours. Trading is 95% emotion. You have to convince investors that we are in a continuation even after a strong pullback AND a 90% increase without a break. I’d say that’s a hard order to fill.

Comments

Post a Comment

Popular posts from this blog

How to Trade Crypto: Technical Indicators

How to Trade Crypto: Technical Indicators One of the biggest myths in trading is that there is a mysterious, secret, unknown trading strategy that calls every top and bottom and will make you rich over night. Stop. Believing. This. The people that are heavy into indicators are selling you something and most often, they are selling you enough rope to hang yourself. Every indicator can make you money depending on how you use it. Every indicator can bury your portfolio and bankrupt you depending on how you use it as well. So more important than what indicator to use, learn to trade the right coin, learn to keep position size small, and learn what to do when things go wrong. These are WAY more important than the indicator. Every single time. All indicators do one of two things. The first strategy/style will give us a target or threshold where we will buy or sell. This is the same as putting a line in the sand where we will sell when we reach this number and buy when we reach that number. T...
Read more

BTC &. ETH Updates. How to Read a Candlestick on a Crypto Chart

Image
Bitcoin has been a little soft lately and has eased up on the vertical trajectory. In my opinion we are likely going to go back to the 200 weekly moving average to establish support. In past bear markets we did have a period of a new attempt at a fresh low before we found our footing so either way I've set up that the bottom is in and am looking to be patient. #bitcoin #ethereum #crypto #cryptotrading #investing #trading
Read more

Large Cap Altcoin Capitulation!

Large Cap Altcoin Capitulation! XRP has put a dent in the basket of large cap alts that are scaring major bagholders of the top 10-20 largest alts. Because of the XRP selloff, large investors into the major alts have capitulated and sold off causing a huge jump in bitcoin dominance today. Microcaps have been fairly untouched by this but the largest coins are getting killed. This is a good thing. The more intense the selling at the bottom of a down trend, the sooner we will find a bottom. I love days like this since when fear is at it’s highest point, that’s when the greatest opportunities are found. We are simply waiting for the bleeding to stop and for markets to flatten out again. Once we start showing signs of support, we’ll buy in with the anticipation of some of the best trades on the market. This will be great!
Read more