Bitcoin Market Update: Price Spike Incoming?
Hi traders, let's look at Bitcoin.
Bitcoin.
In trading, there is this concept called a fractal.
A fractal is basically this idea that patterns repeat on smaller and smaller time frames.
In Bitcoin, like in any other markets, fractals exist and yes patterns repeat over different timeframes.
That's where it gets interesting.
I've been hesitant to share this particular fractal because it's a little crazy and I am a little superstitious too so I don't want to jinx it.
But here we are, check this out.
Back in April 2018, Bitcoin was on the verge of breaking support, shorts were at an all time high when suddenly whales turned it around and applied a great deal of buying pressure to squeeze the shorts out of position.
This resulted into an epic green candle as short sellers bought in to cover their shorts.
This type of price action is called a short squeeze.
As you probably noticed the chart above is an hourly chart.
Now take a look at the daily chart.
The hourly is a fractal of the daily, let's look at them again, this time side by side.
This is quite fascinating.
Now, first a (big) disclaimer. Fractals are interesting but this particular post should not be construed as a trade alert simply because there is no clear data on whether fractals have statistical significance or not.
Second, in the case a short squeeze would materialize, I doubt it would produce a spike of the same height proportionally speaking.
However, it's something to keep your eye on, particularly if you're into a short position right now.
Strategy.
- As we said before keep your eyes on the stock market for signs of correlation with Bitcoin, the market re-opens on Monday I doubt we'll see anything substantial until then.
- If you're bearish, don't go short right now you could fall victim of a short squeeze.
- Our bias remains neural, until proven otherwise we believe Bitcoin has bottomed and is in accumulation.
Until next time,
FØx.
This content is for informational purposes only and does not constitute financial advice.
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by FØx
Crossing my fingers :)
Posted using Partiko iOS
Yeah, let's see how it plays out.
It happened @vlemon
LOL!!
Haha, I was thinking about it !
Nice job !
Posted using Partiko iOS
Popcorn time!
I'm watching the shorts, I'm wathcing the Stoch, the MAs, the Bollinger bands and above all, I'm watching that triangle taper to a point. More importantly, I'm listening to the news and remembering all that has happened this year so far.
Everything confirms what you are saying, and while it doesn't look quite ready yet, something big can happen at any time now. Perhaps it will be a big jump, perhaps it will be a slow uptake. As I said in my post of yesterday, there are already indications that the market is now bullish in some sectors. Just a matter of time now...
Thanks for your input @bitbrain, do you pay much attention to the stock market? It seems to me that there could be some correlation between Bitcoin and stocks. Bitcoin is a risky asset so it might end up being the first asset being dropped in case stocks start really tanking.
I pay some attention to it, not much. I have been trading stocks much longer than I have been trading crypto, but with far less interest and far less expectation of long-term ROI.
I wrote this about crypto vs The Dow some time ago, I find the dwindling correlation interesting: https://steemit.com/cryptocurrency/@bitbrain/a-troubled-relationship-crypto-divorces-dow
I think that BTC is a "risky" asset in general (becoming less risky all the time), but one which is divorced from the market, thereby making it a safe haven in times of trouble. I believe BTC (and other crypto) should do well when other markets tank. What's more, I can point to examples where this already happened. Argentina - happening now, Turkey - a few months back, Venezuela - ongoing, Zimbabwe...
Very good points @bitbrain, thanks for your input :)
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