China, JP Morgan causing selloff on the market
If you have been reading every article about Bitcoin and cryptocurrencies for the past few days, you're not alone. If you have been starting to have doubts about your holdings and the future of blockchain, you're not alone either. This is normal. Markets are driven by two major forces, greed and fear. Since cryptocurrencies produced few thousand of % in over the past years they attracted a lot of investors, especially unsophisticated investors who want a quick buck. Most of them buy high then panic sell.
It all started with China ban ICOs and rumours about them planning to shutdown exchanges, and ban not only token sales but also cryptocurrencies like Bitcoin. Then we had news about JP Morgan CEO Jamie Dimon calling bitcoin a fraud and a bubble and that is going to crash to zero (although he is unwilling to short bitcoin). Another bad news we had today that 'put the last nail in the coffin' was that second largest Chinese cryptocurrency exchange BTCChina will be closed by October.
News means nothing, just a way to explain what was meant to happen
I'm a big fan of Elliott Wave Theory. Over the years I learned a very valuable lesson, there are two things that move price action, sentiment and fundamentals. News means nothing, they are only to fill a prophecy what was meant to happen and fill the gaps. Humans evolved in a way so they always connect the dots, cause and effects. When something happen we can't fail themselves but to find a reason why. Even if somebody wins lottery will immediately start to find a reason why he was chosen by a greater power to win the lottery, how he felt something in his gut and stopped to buy a ticket. The truth is, it's just random.
According to news Bitcoin started crashing due to this and that reason, but EW theory was predicting way before that the market is getting close to a correction. I even wrote an article about the upcoming correction. Bitcoin wally was in 5 waves which should be followed with a correction A-B-C.
Trading strategy
It is impossible to predict how deep the correction will be. Strongest resistance will be 50% fibonacci retracement at $2,535 and 61.8% at $1,952. I would rather wait for wave C correction and start buying when wave C=A.
Please check my previous post:
https://steemit.com/cryptocurrency/@ctyptouniverse/bitcoin-touches-the-target
Follows and upvotes are appreciated :)
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. This is not a financial advice. It should not be regarded as investment/trading advice.
Great post as always.
It happens all the time. Bitcoin skyrocket and than fall hard, but then we go to a new highs. In my opinion it is just a correction.
What goes up must go down. Then it will make another high :)
Artificially generated bear run. This wont last more then another week.
Corrections happen anyways, we will buy cheap. When stock markets will crash, money is going to flow to cryptos, then its going to be too late.
It's just a way to buy cheap btc, now you can see what i mean with the man of jp morgan and the rumors on china
This is just a natural correction that was due to happen even if there was no news. Good opportunity to buy cheap.
I often wonder what the real value of Bitcoin.