Bitcoin Market: Patience.
Hi traders, I am still sitting in cash.
Here's why.
Bitcoin.
- Bitcoin had a good pop on the news of the launch of Coinbase's new custody service for institutional investors:
- While the news was fundamentally good for Bitcoin, it now looks like the rally from $5700 is loosing steam as we failed to break through an area of low volume...
... and as a result we've resumed auctioning down the current value node:
- From here I would like to draw two possible scenarios. On the bull side, we could see a break out with volume in which case a retest of $6700 could constitute a good entry for a swing trade:
... on the bear side we could see a retest of $5700, possibly playing out over the weekend or from Monday next week...
... in which case the only thing that will save us from a drop to $4400 would be the benevolence of large players to hold the $5700 level (right on the edge of that massive volume well)...
... since there is not enough new money coming in to support the price:
Strategy.
This bear market has damaged the Bitcoin brand as a store of value. As a result liquidity is drying up and new investors are waiting on the sidelines.
In the absence of new money, it's up to larger players (miners, institutions) to provide liquidity to this market and decide what constitutes fair price. Right now, these players are trying to establish value and while it can be argued that $6000 is fair price, markets usually tend to overshoot before correcting and establishing a floor... which is why I am not ruling out Bitcoin dropping to lower prices.
As a result, I am keeping my powder dry until the market gives me a clear trading edge:
- multi-weeks sideways price action;
or - break out above $6700 with volume;
or - high volume dump to $4400.
Patience, Patience.
Now back to you traders, what is your strategy in this bear market?
I voted you, give me follow just for help.
Thanks, I upped one of your posts too, cheers.
nice analysis with clean chart. by the way, what's the volume well on the side of the chart ? i have the same view on the possible inverse head and shoulder or if it head south a retest of previous low zone doing a W pattern. After it's still back to the whales when they decide to move the money. keep up the post !
Hey @onepercentbetter, thanks for the comment, a volume well is an area where the order book is really thin. Volume wells usually tend to provide support or resistance (depending on which direction the price is coming from) in low volume markets however in high momentum markets the price tend to slice through them thus producing large candles. This is a type of analysis called volume profile and it's very reliable to understand the architecture of any market, where the areas of support/resistance are etc.
oh so it's a read on the order book for that particular exchange on the asset ? what's the indicator you load on tradingview or how to load it ?
Exactly, and it's real time unlike almost every other indicators that are lagging.
In Trading View go to:
Indicators > Volume Profile > Visible Range
oh thank for the info man ! some new to learn everyday =) will go test it out
Hey man did you manage to make your Volume Profile work?
@onepercentbetter
yes i manage to find it, thank for the guide tradealert =)
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by tradealert from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.
according to me patience is the key to success in crypto without patience you are none in crypto
"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett
stronly agreed............
Very applicable to crypto ;)
Even if I'm not a trader
I know that it is important for many people to trade
Thank you for your work
Thank you for stopping by @aasmck :)
Appreciate the insight @Dan..as per usual!
Appreciated :)