BTC is showing bearish signs - going to short this baby and pick it up later. Los Angeles 10:06 PM.
Couple things I would think about while trading BTC/USD.
Couple things I would think about while trading BTC/USD.
- China re-opening one of their largest trading platform Huoboi on October 26th.
- RSI under 40.
- MacD showing huge divergence over the signal line.
- Chikou span crossed over the kijun sen indicating sell signal. (Downwards)
I have a couple controversal theories about BTC that might play out before and after China gets back into the market.
1. Before China gets back into the crypto market, (because they have lost a large position in BTC due to Government banning Crypto trading in September) I think China is going to create FUD in order to drop BTC price to get in at a discounted position. If I was a Chinese whale, I would create some sort of manipulation in the market and enter the market like JP Morgan.
- Though Huoboi is open to trade on the Oct 26th it is definitely not promoted in any celebratory fashion. Very quiet opening.
- China government can decide to ban mining which would create FUD about the future of Bitcoin.
- China could announce their own digital currency that will compete against Bitcoin. -Doubt it but who knows!
2. No FUD instead China comes back into the market with institutional money, BTC breaks above the $6000 and everyone is happy. Everyone thinks their are geniuses for predicting that BTC to be $10,000. More headlines about kids becoming millionaires over night with an added gesture of Bitcoin best investment in the 21st Century.
- Bitcoin breaks $6000, reaches ATH with the help of China's volume and everyone is happy.
- Volume and price controlled by institutional money forcing Bitcoin to skyrocket.
- Damage was done. China is trading on other platforms and have no incentive to trade on Chinese platform.
3. Sometime after China re-enters the market, stock market is looking shaky and investors are interested in Gold and new areas. Crypto becomes legalized in United States and exchanges open up allowing institutional money to flow in the billions. Billionaires reap the benefits while the fish gets fried. With the legalized exchanges owned by Goldman Sachs and big banks, existing exchanges will be forced to comply to new laws and end up losing some of their business. Manipulation at its finest so that the legalized exchanges will flourish and the current ones will diminish. With centralized exchanges and big banks utilizing big money, decentralized exchanges are bullied by lobbyist and politics -development for atomic swaps and decentralized exchanges are pushed off and used by the banks on their back end.
- United States legalizes exchanges for Crypto owned by big banks and politics.
- More institutional money flow into the Crypto market.
- Last but not least, existing exchanges takes a hit from big banks and public uses for decentralized exchanges are pushed back 10 years.
4. Continued hard fork of Bitcoin - It will either shape up to be a diamond or be an aged whiskey diluted with too much ice. Hard forks are great when they are not being used to create new coins. This could be a something that is happening in the deep space of crypto that we are not thinking about. If you keep the original coin intact and continue to upgrade through hard forks Bitcoin would strengthen in value and become invincible to problems that are foreseeable in the future. But if you're looking to dilute Bitcoin, chances of replacing Bitcoin for the number one spot is easier when you keep splitting the demand.
- Bitcoin hard fork controversial upgrades to improve or to dilute the product.
- Replace Bitcoin for the number one spot with an existing coin or with another coin in development.
Comment:
Comment:
