2 Bulls and 1 Bear signal, Miner wars analysis
Bull #1: Break out of 6 month down trend channel confirmed.
Bull #2: Inverted H&S extension, with volume increasing from the price bottom.
Bear signal: Bounce off the 200MA, we are still in death cross zone.
Miner war fundamental facts:
Difficulty is going parabolic, which means machines are being sold and installed.
Miner revenue will be cut in half after halvening.
CME options, futures and open interest in general is going up. They are all incentivized to see more volatility.
Assumptions:
It will be harder to run a mining operation after the halvening since rewards are cut in half, and difficulty is going up. Miners will have to buy machines to maintain their position.
A possible 4 month long Bull trap strategy could be to drive the price up, enabling miners to use their rewards to buy more machines, in hopes that they can sustain enough hashpower to stay in operations after the halvening.
After the halvening larger players will want to tank the price to break "at risk" operators, and force them to liquidate their operations, flooding the market with cheap fire sale machines.
Buy the rumor Sell the fact
A strategy to consider is to take a long position under 8400, with a stop loss around 7600, and a partial take profit target just under 10k or 9900, with a longer potential to extend to 11400 just before havlening.
suggest to read the bitmex blog article i can haz ipo for more
Bull #2: Inverted H&S extension, with volume increasing from the price bottom.
Bear signal: Bounce off the 200MA, we are still in death cross zone.
Miner war fundamental facts:
Difficulty is going parabolic, which means machines are being sold and installed.
Miner revenue will be cut in half after halvening.
CME options, futures and open interest in general is going up. They are all incentivized to see more volatility.
Assumptions:
It will be harder to run a mining operation after the halvening since rewards are cut in half, and difficulty is going up. Miners will have to buy machines to maintain their position.
A possible 4 month long Bull trap strategy could be to drive the price up, enabling miners to use their rewards to buy more machines, in hopes that they can sustain enough hashpower to stay in operations after the halvening.
After the halvening larger players will want to tank the price to break "at risk" operators, and force them to liquidate their operations, flooding the market with cheap fire sale machines.
Buy the rumor Sell the fact
A strategy to consider is to take a long position under 8400, with a stop loss around 7600, and a partial take profit target just under 10k or 9900, with a longer potential to extend to 11400 just before havlening.
suggest to read the bitmex blog article i can haz ipo for more
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