Dump and Pump - The Bitcoin Way
Dump Cancelled... Nothing to See here
Just when you thought everything was collapsing and death was right around the corner... It just stops. Like the mad sellers just disappeared into the night replaced by some blood hungry buyers willing to rebound everything they can get there hands around. Within 2 days bitcoin dropped 30%+ with some exchanges touching $9k, and now only 2 days later the prices are back up 30% to around $12k. Talk about some nice volatile market action for those day traders!
So where to now?
I'm not going to bore anyone with technical analysis because I seriously don't believe it exists in bitcoin markets. Sure, those wave patterns might work well with traditional stocks but I really doubt how effective they are in predicting these chaotic movements in bitcoin.
Instead, I rely on instinct to guide my way... and years of watching these markets act more crazy then a psych ward patient which has revealed some hidden trends.
Bitcoin likes to Dump First then Pump later
Basically, it isn't until the markets look doomed to collapse does the rally begin. I call it the Shake-Out - Getting those week hands to sell that recently bought in during the last craze, most likely at a loss, and then BOOM! 200% in a week!
Once the sellers are able to induce enough fear into the markets and the panic sellers finally part with there short sighted vision - a nasty dump crushes the price. Shortly to follow is the buying spike which send volume through the roof!
Which, when all this is combined, is typically the tell-all sign that a rally is ready to happen.
Bitcoin refuses to pump directly, there needs to be a dump happen before any upward movement is realized.
Unfortunately, for many investors new to the crypto scene and still using technical analysis to guide there trades... These dumping moments scare the BeeGees out of people! Which is quite apparent when you see the chart collapsing in a massive downward spike. Lots of people crowding for that exit door.
All-in-all, it looks like we just received that downward spike of doom!
It's definitely not a for certain - I'm not a fortune teller and I can't see into the future. Don't blame me if Bitcoin goes to $1 in the next week... But from what I am seeing in the markets - I am willing to say this is looking pretty good. The next few days will be key to determining what is going on but based on risk/reward trade-offs, I would lean towards being more "Risky" right now as compared to staying on the safe side.
There is always profit to be made if you can get your timing correct
What are your thoughts on the current market situation?
~Keep on - Steemin' on~
@generation.easy
Bitcoin & Silver Fanatic
I think the sudden buy can be answered by Fibonacci levels. I haven't spent a ton of time researching Fibonacci, but when I used the fib tool on tradingview, I could see that Litecoin bounced off of a major fib level of 0.618. This is the magic number for Fib gurus. I just wrote an article on my take for Litecoin here: https://steemit.com/bitcoin/@cryptomeeks/litecoin-will-it-bust-through-fib-levels
I don't put all my faith in technical analysis, but I know it's something traders use during times of uncertainty. We'll see if cryptos continue their trend upwards or if this is just a fake out.
Definitely the analysis, waves and elliot triangles dont work with Cryptos at least now. Buy whatever you believe in and never sell at a loss. Future will be bright.
That a great strategy - works everytime
It seems to dip every January, my guess would be people paying off xmas debt, then it leads to a bit of panic from new investors, that makes them sell before they lose too much, and on it goes until you have the people left, that will hold regardless, what puts me off bitcoin though is not the high price, it is the high fees for transactions.
Yeah, someone was just telling me about jan. Being a bad month each year. Your probably right.
As for fees, ethereum is getting pretty high too. Makes me wonder how Eth zero fork will do.
Definitly something has to be done, thats why bitcoin cash has gained some nice ground- cheaper fees
True, though the cheapest I have used and bought re fees is shhhhhh ripple, I know that is like a swear word round here, but it is the single cheapest I have found, that I can actually trade almost anywhere, the only problem being, you have to keep a minimum 20 in the wallet, that was fine at 16 cents a coin (when I bought them) , not so nice when it hits $3 or more, like early this month.
Lol, Yeah ripple has earned itself a bad name in crypto... Bankster manipulated. Early development team manipulated the market too.
Just a bunch of crap surrounding Ripple - hard to not recognize it though with such a huge marketcap.
Si que bueno excelente, el precio del bitcoin siempre nos ha tenido acostumbrado a las bajas, pero siempre cuando sube o se recupera lo hace con mas fuerza.
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