Bitcoin has had a nice pullback from the highs earlier today. 13- 13,200 serves as the next resistance point and may be a good point to initiate a short position
Humans are rather predictable. When price goes sooo high, people started to do counter trend aka kamikazae trading and short the market without waiting for clear reversal pattern / U turn sign. A simple thing like a ruler can help you decide whether you can short the market or not. past few hours, BTC spread was extremely wide ! investors / traders were in frenzy mode.
I thought you didn't believe in it? I guess that 10k mark made you change your mind The reason why Bitcoin has become so volatile right now is because it has already passed 10k, and for it to move 10 percent it has to move around 1k. And this is where things start to really get crazy because we can expect some very high volatile swings and who knows if 20k is where it's going to stop this time? I think there's a very good chance it's going higher this time. And all these people who didn't believe in it before are going to fomo in like Maxinger already has and drive the price even further
No. I don't change my mind. we professional traders are always on alert and look for opportunity, for change in market condition. At around 10K level, there was no sign of reversal. I hardly trade BTC due to its relatively poor day range and liquidity. worst, margin requirement is rediculous. There are hundreds of other more tradable futures. If you see my ET Journal , you can see that I rarely trade BTC.
Well I don't know much about trading futures. Maybe I should learn. But I would think that trying to trade BTC futures wouldn't be like trading the coin itself on an exchange? And probably the lack of liquidity is what makes it so volatile, so wouldn't it be better to trade BTC instead of BTC futures?
It looks like my call as a short on bitcoin would have worked out for those that had the access and opportunity to execute it properly- Covering short from the time I called at 13,200here for a gain of $2,200
Overall, the latest correction in the price of bitcoin is nothing out of the ordinary. History shows that the top cryptocurrency has sustained much more rapid losses during a shorter period of time over the course of the past several years, yet it has not discouraged long-term investors.