My take on Technical Analysis in this emerging market.
With all of the Technical Analysis going on out there we should be asking the question, why is it important?
I can not speak for the Stock Market, but when it comes to Crypto, TA is a self fulfilling prophecy! What do I mean by that? Well while the crypto space for the better part of its life has been populated by tech people and computer wizards, now it is being frequented by finance people. Why is this significant? Well the tech people made their investments based on the best technical Crypto assets, but based on what a chart says about it. So for the longest time people would research what product was superior and the leaders would be based on people betting on which project had better aspirations, who had a team capable of keeping those aspirations and how their product was being adopted. However, now that the fiance people are in, and with them the big money of not only them but their clients. This information is important because unlike the way things have been we now have the game being played, not by who is best but by what charts look best. So regardless of how good the product is, what team is implementing it and who has adopted it, if the charts showed a bullish signal, the finance people bough, if the signal was bearish, they sold, and because they are playing will a stacked deck their plays run the board. So to put this plainly, hypothetically lets say Cardano just released its main net, is being traded on a new exchange and just released a master node, but VeChain's chart showed a double bottom with a bull flag, while all the techies are jumping on Cardano, the finance people are jumping on VeChain because the Technical Analysis, and since the finance people have the money to make things happen the technical analysis more likely then not will follow.
Why is this all important? Well with the approaching Death Cross, whether or not the techies still want to buy Bitcoin, all of the finance people will likely pull out of Bitcoin and Crypto if this Death Cross is realized. And folks we are getting super close, as a hedge, I took out some money in case it crashes so I can buy the dip.
I am not a financial advisor and this is not financial advice, invest at your own risk.
TA is awesome magic!
Your blog is awesome too. Consider following me back 🙏
Following. Thank.
The crypto market is almost entirely full of amateurs, that's why it's so easy to predict, everyone has been taught the same garbage theories and TA. It's one self fulfilling prophecy after another.
They're doing the exact opposite of what the professionals do, which is why the professionals are making lots of money and everyone else is holding and praying.
The market for Bitcoin is 69% net long at the moment, which means the city is selling and shorting where possible.
You are very smart, I will continue to follow your blog hun.
Could you please explain to me,what The market for Bitcoin is 69% net long at the moment means?? Thanks a lot!!
Unrelated: @embomb701, the pullup challenge is on, I've tagged you there yesterday, check my profile. Everyone gets a reward and so far there's just one entry :D
Sure, no problem I know you didn't ask but I'll give the full version :-) lol
At the moment, 69% of retail traders (amateurs, who don't know shit) have bought Bitcoin and think it's going up. And statistically, 90% of retail traders are always wrong.
So whenever there is a majority of people betting in one direction, because they're wrong 90% of the time, the smart money (the city, hedge funds, professional investors) take the contrarian or opposite position. That's how they make all their money, it's a guaranteed 9:1 probability.
Another way to look at it, if everyone has already bought Bitcoin expecting it to go up, then there's no-one left to buy it, so why should it go up ? Supply and demand...
I personally wait for over 80% before entering the market (in the opposite direction) but the pros normally wait till it's 85-90%.
Hmmm dropping knowledge, thx a lot!
How did you get the current 69% number btw? Where are such statistics to be seen? I'm just wondering who are actually those 100%...people who ever owned any bitcoin?..or sold bitcoin in the previous month and now are back?
Thx Thx!
It's all publicly available information, should be able to find it using a quick google search. I just saw that one flash up on my brokers newsfeed, 69%, I think it was from a crypto brokers client list.
Here's an example though, just from a news site > https://www.dailyfx.com/sentiment?ref=SentimentWidget
69% of people have long positions rather than short positions, people typically take short positions when they think the market is going down and take long positions when they think it will move up.
Pull Up challenge you say, I will check it out, but I am currently 18 pounds over my normal weight and 26 pounds over my fight weight, lol. I am getting back on track but its like doing Pull Ups with 18 pounds in a back pack. lol.
Hahh yepp, I do understand long and short terminology...just the word net confused me...+ I didn't know such information are available, ratio of people who are currently long/short....Im not a trader by any means of imagination haha, regularly watch some TA videos on YT but I don't have balls to actually sell. I'm happy with my amount of coins and believe in the long run they'll be worth a lot anyways
Pullup challenge - hahh, nevermind dude, just challenge yourself, it's not about being a winner...No need to be ashamed of low number, you could still whoop us all in the cage or on the mat :D
The information is mostly assumed, they have ways of making hypotheses based on information they gather mostly with computers.
I will give it a shot, anyways but I just wanted to let you know that when I was in shape my numbers were way better. Did you see my before and after getting into crypto post? How long do I have to post because today is Push day for me so I can not do it till tomorrow.
It ends on this Sunday, 8pm CET :)
And yepp I've seen & even commented there. I'm really curious what can such intense and well-planned month do...pumped to see the results!
I will try to make a video after work tomorrow. Thanks for tagging me.
That's why I'm looking to start using this stuff. Steem is super strong to me because it has a built in use. The speculative side of crypto scares me a bit because of exactly what you've said.
I get what you're concerns are but, in my opinion there is nothing to fear. My concerns are for the short term, in the long term Crypto is going to the moon!
Oh and Steem I agree, adoption is Key and Steemit is becoming one of the most visited sites on the net.
Probably because one in three of the people I tell about it are actually going. Half my Facebook posts are "hey, go make a profile on steemit, it solves this problem you have with fb."
Steem it good for blogging but there will be a company like Facebook soon. https://socialx.network/
@bigdeej and @shadowbot are making shadowbook, which is gonna be like fb, but here on steem. Soon as it's here, fb is dead. Messenger, groups, and all.
Keep me posted on that!
If you follow @shadowbot, they post updates :) I'm really looking forward to it myself.
Nice, I do follow them and I am a member as well.