Bitcoin Fenced In By Price Channels
Price channels are a wonderful thing, the show true support and resistance, and fence in market noise.
A sudden and sharp test of the downside was expected (see post 14 Aug 2019).
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In Wyckoff logic terms the current (2019-09-24) sharp attack (10% drop) on price support lines still may qualify as a high volume spring, and of course will require further testing to prove it is not a dramatic sell off. We will wait and see.
Yes risks are very present and the not so good news of the go live Bakkt bitcoin futures contract has been used for such an attack on support lines. Yet this is a side note as bitcoin continues to be digital gold, plus for the big boys to get in they must maneuver prices lower to acquire volume to accumulate at discount prices. Mission accomplished!
Channel lines fencing in bitcoin market price action noise.
Short term view
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Longer term view
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Investing Quote...
.." If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole"..
Jesse Livermore Trading Rule
My experience has been that in successful businesses and fund management companies, which performed well over the long-term, some courageous decisions were taken. Courageous fund managers reduce their positions when markets become frothy and accumulate equities when economic and social conditions are dire. They avoid the most popular sectors, which are therefore over-valued, and invest in neglected sectors because being neglected by investors they are by definition inexpensive. The point is that it is very hard and that it takes a lot of courage for a fund manager to avoid the most popular sectors and stocks and to invest in unloved assets. Finally, every investor understands the principle ‘buy low and sell high’, but when prices are low nobody wants to buy.
Marc Faber
.."It's easier to fool people, than to convince them they have been fooled"..
Mark Twain
..“One must search through a maze of complex and contradictory details to get to the significant facts … Then he must be able to operate coldly, clearly, and skilfully on the basis of those facts.” The challenge for the successful speculator is “how to disentangle the cold hard facts from the rather warm feelings of the people dealing with the facts.” Moreover, “if you get all the facts, your judgment can be right; if you don’t get all the facts, it can’t be right”...
Bernard Baruch
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Mark Twain
Disclosure: None.