Any direction before the Bitcoin halving?
It will dip, no; why should it?, why shouldn't it?. This could be you just sitting down looking at the candlesticks in a bitcoin graph. You know "the market is a funny place where financial experts gather"--- dani-asi. The aim has always been to maximize profit and this is tied down to the level of information you can accumulate and digest at even the slightest and shortest period of time. We have seen bitcoin giving some market scare for a while now..
The liquidation after new heights seemed a caution sign, turning the market into 'steadily, steadily wins the race. What will happen a week before the halving? Which direction will the bitcoin market be pointing at and can there be a slippage before the D-day?. All these questions are very vital as it stands. Looking at the facts that there are possibilities of nearly 360 days range before bitcoin could give the needed halving result. If you did read my last article; who will be selling, you'll know what I am talking about.
Can there be another liquidation before the halving? We all know the halving is irresistible to investors, records present green pasture yet it can be for both those expecting and those depending. What am I saying here?Can the market bears make a double profit during this halving cycle? From my views, the possibilities are very high. Capitalizing on the present market FOMO can be a sought after by some heavy bag investors. What if institutional investors decide to lead the way. Bitcoin in the last two weeks has been dwelling within the 60K digit mark, touching the 70K and reversing. At this stage I see no market dip possibilities, resistance has been built around this price.
Steady 70K plus will be risky
The highest bitcoin price NOW has been around $73,700. What does this present? Let's review what happened when bitcoin crossed the $68,900 dollars price to around $69,170 dollars, there was nearly 14% percent liquidation within 24 hours. All those who longed the market faced the present loss. That didn't bother me personally because I knew certainties to bounce back were high. Institutional investors helped to reverse the price a couple of days later to the new all time high. You may think it happened because old bag holders were pulling out after two years of waiting. You are right, in fact there is a need to appreciate the ETF firms because it could have been worse than 14%, we all know what herds mentality can do.
As the market climbs back to the 70K plus, there are possibilities of stability within that region from the first week of April. Investors will be reshuffling assets in the portfolio's to meet up the halving so yes, expect bitcoin to give green lights probably to a new all time high. I am eyeing the 75K region that will be followed by later correction before the halving itself. There may be FUD for now, yet the moment this 70K digit region stability is ascertained, FOMO will kick in. If bitcoin is going to skyrocket to a wild price, there is a need to hold much and one of the ways is to cause another liquidation using this halving opportunity as a bait. Financial powerhouses know this game.
How deep will the liquidation be?
If this market prediction works out just as I assume, I see something still around another 14%. The 60K region has shown a lot of bullish resistance so I don't think it will break beyond $65,000 dollars. Those who wish to long the market ahead of the halving need to be much careful, the repetition of the former is possible. I know some are yet to recover from the last liquidation, and it may take the entire year to do so.
A friend on chain once said 'there is no free cheese, except the one in a mouse trap' and I bought the idea. There is a huge market game on the ground as we speak, you can't read the minds of every single investor in the market yet this particular vision is true for all, we are all here for profit. Influence is what shakes the market, when it climbs closer to the 75K I'll advise you back off, they'll be a pay cut by influencers.
Chasing FOMO has never been my style of investing, the loss is always a crack to the bone when it surfaces, just a single hit and you'll be out of both capital and interest. Do well to study your charts closely. Instinct plays a huge role in the market, pay that vital attention. Trying to tap from the bitcoin oil reserve presented by the coming halving may halve your investment if not the entire portfolio.
To conclude, let me add, following green candles comes at a cost especially when you are a floating investor. The halving is getting very close and the curiosity is becoming intense. Who wouldn't want to benefit from the spoils, indeed no one. Yet, do me this favor, don't be the spoiled. The direction of bitcoin looks upwards yet the zig-zag lines means there will be some correction to compensate the bears. While being bullish, there is a big need to avoid being the victim. Definitely there will be victims you know, people must give up for other to smile bringing us back to that old saying, 'loss is a transfer of gain'.
Posted Using InLeo Alpha