CHART ART: BITCOIN BREAKS OUT THROUGH $3,000 TO REACH NEW ALL TIME HIGHS!
GOOD MORNING STEEMIT!
Well how about them Bitcoins! BTC/USD to all time highs, bringing everything else up with it. I hope some of you short term crypto traders that read @bulleth's Market Wraps got on after this call.
Bulls will be looking to enter long/add above 2900 and again above 3K
Not too bad, right?
I am literally buzzing and hope some of you other holders are feeling some of this too. Drugs are bad kids. Just buy the motherfucking dip!
CHART ART
Coin TelegraphCoin Telegraph is so boss. I can't get enough of these cartoons. If you're not a reader, then definitely head over there for your dose of crypto news, even if just for the visuals.
Fundamentally, this 'Why SegWit is pushing the Bitcoin price up' extract from Joseph Young's opinion piece is excellent:
More importantly, the activation of SegWit marks the first major milestone in Bitcoin in terms of scaling, as Bitcoin has continuously operated within the 1 MB block size limit established by Bitcoin creator Satoshi Nakamoto upon its launch in 2009.
SegWit will also establish the infrastructure necessary for two-layer solutions such as Lightning Network to operate. The implementation of Lightning Network and other solutions including TumbleBit will further scale the Bitcoin network by enabling micropayments and applications that were not possible before.
This is proof that Bitcoin can continue to be scaled, which has massive real world implications for crypto.
But while having an understanding of the fundamentals, I'm still just a trader that focuses on technical levels. The simple explanation from a technical analysis point of view was that during the SegWit uncertainty where Bitcoin took a 50% dive in barely a week amidst so called 'crypto industry experts' telling us to dump it all via their shitty YouTube channels, anyone that shorted had a stop above the highs. And there were a lot of shorts all the way down. We were in the midst of a lot of panic.
As things settled and price rebounded, these shorts have to be closed sometime. What we're seeing now is a whole ton of stop losses triggering and buying the market back. What happens when there is no supply but all demand? Well price only has one way to move, and that is parabolicly up.
Anyway, onto the CHART ART and a look at why Bitcoin has ripped faces off any muppet left holding shorts from pre-SegWit.
BTC/USD Daily:
Wherever there is an obvious level, it's going to get obliterated. Put that in your technical analysis textbook and pay me royalties please.
This was both a huge horizontal resistance level AND an all time high at a psychological round number. Of course there are a shit ton of stops above it and of course the entire trading world is watching and waiting for something to happen around it.
What did you think was going to happen?
BTC/USD Hourly:
Zooming into the hourly, we can see the breakout more clearly. Beautifully clean price action that shows what happens when stops start to get triggered and there is just no supply to soak up the demand.
BOOM!
From here, we look for these short term resistance levels to be retested as support for levels to trade. Just be wary up here. This is just the beginning of whatever is about to happen...
Peace!
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I don't understand how The value of bitcoins continues to rise so high when all of these new crypto currency's are coming to light. What makes big queen more valuable then say lite coin or any of the other ones? And is it possible that any one of these new crypto currency's could take off and bit coin could lose all value? Where is the money that is paid for bitcoin kept? Sorry I'm a total noob and these are just some of my questions.
It's been around the longest, has the most infrastructure built for it, a first mover advantage, and a strong network effect.
Exchanges don't sell bitcoins. They provide a platform where traders who have bitcoin can offer it for sale, and traders who have fiat currency can place bids. Any time the two meet, a trade happens. Exchanges hold balances in various currencies (fiat and crypto) for their customers, which customers can withdraw. There are also OTC markets like localbitcoins and Bisq, where coins are escrowed but fiat currency changes hands without an intermediary - either in person or via cash deposit to a bank account.
Thanks for this ashaman. Great explanation.
thank you
it's amazing post
i just follow you man
It's pretty good, sure... but amazing? Come on man, now you just sound like a spammer.
There's definitely been an increase in spammy comments like this lately...
So you're saying I'm not actually amazing?!