Bitcoin: 14K Support In Range?
Great lessons to learn about risk, perception and how easily the herd is mislead in the most deceptive industry in the world thanks to FTX. Were you exposed to this unexpected event risk? My recent sell signal (mentioned here) from 20,250 reached its profit target and then some. Price is now within the 17K to 14K support zone which I have been accounting for since June (read my previous articles).
I don't short Bitcoin, and I am not about to start, but I share the trade ideas if the signals appear. One thing I can at least say for sure: I HAVE NOT called ANY longs for months. My "less is more" analytical process helped me steer clear of this sell off because there was NEVER a compelling reason to go long. NO ONE saw this coming, yet I managed to avoid the long and shared a sell signal without following ANY public information, news, "experts", etc. I FOLLOW PRICE.
As I have been pointing out for MONTHS, Bitcoin refused to compromise any major resistance levels (22K to 25K). Along with that, we have had a rising rate environment which reduces the chances of a sustainable rally even further. That is ALL you had to know to make a rational decision. All it takes is an unexpected catalyst, and next thing you know we are breaking supports (which is in line with a BEARISH environment). The market was pointing to this possibility the entire time and never offered ANY evidence of a trend reversal, bull market, or any other optimistic NONSENSE that is regularly pushed in the mainstream news.
So what now? This situation is a result of the extreme LACK OF OVERSIGHT in this industry. It began with a "leaked" balance sheet? Exposing a much more REALISTIC picture of the FTT token which comprised more than 60% of the companies assets? The valuation was FAKE. This should make you wonder about the numerous alt coins out there that were overly hyped and possibly "engineered" to encourage a "perceived" value? How many other exchanges engage in this type of "market making"? Like I remind my followers regularly, the role of the retail trader / investor in this game is to make others rich. And with no regulation, alt coins are the perfect vehicle to accomplish that. Bear markets expose the frauds in this game. Who's next? Bitfinex and Tether?
Right now price action in Bitcoin is pointing to a continuation SELL SIGNAL upon the break of 16,300. IF momentum continues (which price structure favors) it is within reason for price to test the 14K support over the coming week. There is also a new resistance level in the 18,500 area.
Lesson to learn from all of this: 1) do not trust any exchanges in an unregulated industry. (never keep all of your assets in one exchange). 2) Investors are exposed to this type of event risk. Swing trades are much more effective here because they LIMIT this type of exposure. 3) Learn to make decisions on the LEAST amount of information possible. A chart can help with this.
Thank you for considering my analysis and perspective. I hope you find it helpful.
I don't short Bitcoin, and I am not about to start, but I share the trade ideas if the signals appear. One thing I can at least say for sure: I HAVE NOT called ANY longs for months. My "less is more" analytical process helped me steer clear of this sell off because there was NEVER a compelling reason to go long. NO ONE saw this coming, yet I managed to avoid the long and shared a sell signal without following ANY public information, news, "experts", etc. I FOLLOW PRICE.
As I have been pointing out for MONTHS, Bitcoin refused to compromise any major resistance levels (22K to 25K). Along with that, we have had a rising rate environment which reduces the chances of a sustainable rally even further. That is ALL you had to know to make a rational decision. All it takes is an unexpected catalyst, and next thing you know we are breaking supports (which is in line with a BEARISH environment). The market was pointing to this possibility the entire time and never offered ANY evidence of a trend reversal, bull market, or any other optimistic NONSENSE that is regularly pushed in the mainstream news.
So what now? This situation is a result of the extreme LACK OF OVERSIGHT in this industry. It began with a "leaked" balance sheet? Exposing a much more REALISTIC picture of the FTT token which comprised more than 60% of the companies assets? The valuation was FAKE. This should make you wonder about the numerous alt coins out there that were overly hyped and possibly "engineered" to encourage a "perceived" value? How many other exchanges engage in this type of "market making"? Like I remind my followers regularly, the role of the retail trader / investor in this game is to make others rich. And with no regulation, alt coins are the perfect vehicle to accomplish that. Bear markets expose the frauds in this game. Who's next? Bitfinex and Tether?
Right now price action in Bitcoin is pointing to a continuation SELL SIGNAL upon the break of 16,300. IF momentum continues (which price structure favors) it is within reason for price to test the 14K support over the coming week. There is also a new resistance level in the 18,500 area.
Lesson to learn from all of this: 1) do not trust any exchanges in an unregulated industry. (never keep all of your assets in one exchange). 2) Investors are exposed to this type of event risk. Swing trades are much more effective here because they LIMIT this type of exposure. 3) Learn to make decisions on the LEAST amount of information possible. A chart can help with this.
Thank you for considering my analysis and perspective. I hope you find it helpful.
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