Pay Attention to the Bitcoin Talking HeadssteemCreated with Sketch.

in #bitcoin6 years ago (edited)

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As a technical (forex) trader, I don't pay much attention to the "Mainstream news pundits". There are so many different and clashing opinions out there and they are a dime a dozen. In fact, I would go as far as to say that the financial news we get from CNN, CNBC, Yahoo etc is a strictly controlled narrative enforced by large corporations to persuade people (speculators and the general public) into thinking a certain way.

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Large investors, hedge funds and the wealthy elite don't listen to the 'news'. They are not foolish enough to trade the general financial news that is not only scripted but also outdated as soon as it hits the headlines. They need a certain narrative to be put out there to allow them to get in out of large positions. That means Joe Public has to be on the other side of their trade.

This is my belief - that is why I use the 'news' as a contra-indicator!

"Contrarian Investing is an investment strategy that is characterized by purchasing and selling in contrast to the prevailing sentiment of the time. A contrarian believes that certain crowd behaviour among investors can lead to exploitable mispricings in securities markets."

For the fun of it lets take a look at the Bitcoin-related news published in the last 24hrs by Yahoo (Yahoo! News has 175,000,000 - Estimated Unique Monthly Visitors and is the largest global news site) ...

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Bullish (positive Bitcoin) articles:

"Bitcoin Defends $11,000 Mark and Eyes Move Higher"
Bitcoin is stuck in a narrow range currently, but a breakout may lie ahead, the price charts indicate. Link: https://yhoo.it/2DzMkHL

"Bitcoin exchange Coinbase reportedly made more than $1 billion in revenues last year"
Tech publication Recode reported Monday that Coinbase saw revenues top $1 billion last year. Coinbase, one the largest platforms for buying and selling cryptocurrencies, is reportedly making money hand-over-fist. Recode, the technology publication, reported Monday the San Francisco-based company saw. Link: https://yhoo.it/2DDGENe

"Op-Ed: Here’s What Paul Krugman Got Wrong in His Bitcoin Tweetstorm"
Like many other mainstream economists, Paul Krugman has long-shown a complete disdain for Bitcoin. In late 2013, he went as far as to write a piece titled “Bitcoin Is Evil” for his column in The New York Times.Moral objections to bitcoin are one thing, but Krugman also does not see much utility in the cryptocurrency. Link: http://bit.ly/2DB9MEB

Bearish (negative Bitcoin) articles:

"Goldman Sachs warns high net worth clients about cryptocurrency mania"
Goldman Sachs is warning its wealthiest clients that there’s no doubt that the rise in bitcoin’s price (BTC) has pushed it into bubble territory. The firm’s Private Wealth Management division touched upon the cryptocurrency craze in a 108-page note titled “(Un)Steady as She Goes,” an annual outlook" - Link: https://tinyurl.com/ycnphbd2

"Banking group Nordea bans bitcoin trading"
Nordea has forbidden all its roughly 31,000 employees from trading in cryptocurrencies such as bitcoin due to high risks, it said on Monday. The Nordic region's biggest bank said the ban will be imposed from Feb. 28. The risks are seen as too high and the protection is insufficient for both the co-workers and the bank - Link: https://tinyurl.com/ybrp5mdx

"Bitcoin Plunges 9% as South Korea Prepares a Cryptocurrency Tax"
All of the top digital currencies are in the red to start the week. Link: https://tinyurl.com/y8wfnmnc

"Bitcoin is slumping back down toward $10,000 - Yahoo Finance"
After paring much of last week’s heavy losses on Friday, the world's largest cryptocurrency lost another 8% on Monday, bottoming out at $10,479 per token. Last week, all cryptocurrencies were walloped in what’s been called a bloodbath.
Link: https://yhoo.it/2F71CRD

"Bitcoin and Ethereum Price Forecast – Prices Consolidate and Range"
The prices are locked between the $11000 and the $13000 regions over the short term and this is expected to continue for the next few days. Link: https://tinyurl.com/yacpxdvc

"Homeowners everywhere are listing their properties for bitcoin"
The bitcoin craze has officially jumped into real estate. Despite the risky, volatile nature of cryptocurrency, homes and property across the U.S., Australia, Canada, and beyond are for sale for the unpredictable coin. Even after one bitcoin dropped from $14,000 to $11,000 in value in a matter of days. Link: https://yhoo.it/2F71CRD

"Here's why bitcoin and other cryptocurrencies are crashing—again"
Link: https://yhoo.it/2F4Gg7q

"Bitcoin tanks more than 10% to start week, now back below $11,000"
Bitcoin and other major digital currencies dropped sharply Monday morning. Link: https://yhoo.it/2DBoETj

"CRYPTO INSIDER: Bitcoin falls again"
The electricity needed to mine one bitcoin is more than the average American household uses in two years, Morgan Stanley estimates. Bitcoin's fluctuations are too much even for cybercriminals, who are beginning to instead denominate their ransoms in US dollars; Finally, OF COURSE governments won't give up control. Link: https://yhoo.it/2F4fjR9

"Criminals Drop Bitcoin for Other Cryptocurrencies"
Choosy crooks... Link: https://yhoo.it/2DzUkZA

"Bitcoin, Cryptocurrencies Steady but Regulatory Concerns Weigh"
The price of digital currency bitcoin along with other cryptocurrencies held steady on Monday but gains were held in check as uncertainty over South Korea’s plans to regulate digital currencies continued to weigh. Link: https://yhoo.it/2DDOCFV

"Bitcoin should not be banned, but regulation is important"
Former FDIC Chair Sheila Bair discusses the potential regulation of bitcoin. Link: https://yhoo.it/2DD0MPa

"A growing blackmail scam is demanding payment in bitcoin"
A new crypto scam is targeting men around the country. Link: https://yhoo.it/2F62F41

"Will Regulations Cripple Bitcoin and Other Cryptocurrencies in 2018?"
Bitcoin and other cryptocurrencies are getting hammered by regulators across the globe, which could boost equities such as Goldcorp Inc. (TSX:G)(NYSE:GG). Link: https://yhoo.it/2F4gJer


As you can see by just quickly glancing over the headlines and summaries they are negatively biased. In the articles, they use predominantly negatively associated wording and phrases.

'Bullish' terms used: bottoming out, could boost, governments won't, held steady

'Bearish' terms used: bitcoin falls again, dropped from, unpredictable coin, risky volatile nature, drop bitcoin, regulatory concerns, digital currencies dropped, currencies dropped sharply, bitcoins fluctuations, regulations, growing blackmail, for cybercriminals, hammered by, craze, crypto scam, regulations cripple, potential regulation, cripple bitcoin, banned but, the risky, bitcoin dropped, bitcoin craze, unpredictable coin, dropped sharply, bitcoin falls, volatile nature, are crashing again, bitcoin tanks, bloodbath bitcoin, called bloodbath, were walloped, cryptocurrency lost, bitcoin tanks more, despite the risky, losses on Friday

This language is used to shape the ideas and beliefs of many people reading these articles. Remember, Yahoo is the top news source for millions of readers! They will use this information in their approach to trading the Bitcoin market.
Knowing that the major media outlets are controlled by the wealthy few who use the media to spin the narrative they want. The massive hitting on Bitcoin gives me a very bullish outlook!

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Excellent points, by NZFX!

Our little dirty trading hints:

  • the most negative news are always at the local bottoms;
  • Bull markets are usually accompanied by negative news, making investing in the core assets hard for any unexperienced party
  • You will hear the most poisitive news at the local highs and paradise-type of info at the highest point!
    ;-)
    SUBSCRIBED!

Thanks for your comment and excellent points. It is the naive news-reading public who are left holding the bag! Big traders manupilate the public eactly where they want them...

A good read @nzfxtrader .
Upvoted ReSteemed and Followed you.

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