Bitcoin - Rats on a Sinking Ship - Another Coat of Paint
Another week and we are simply back to where we were a couple weeks ago. The BIG move yesterday was really not that big of a deal. It was like getting ready to hang your Farrah Fawcett & Def Leppard posters on the wall and the painter came in and put up another coat of paint. With that said there is some evidence we may have reached a bottom, and the longer we stay above the 6100 level the less likely we collapse into the Abyss.
Over the past few days short interest has dropped from 32,600 to 21,700 as shorts abandon position after position. I doubt the $200 price spike spooked anyone, but it can not be denied, shorts are getting the hell out like Rats on a Sinking Ship.
More and more large endowments and funds are adding Bitcoin to their portfolio. Princeton adds to the elite endowments that have entered finally. Do you really think others are not? So those retail investors and analysts that have egos larger than the market, are playing right into their hands. Money flows from the weak to the strong, but also the dumb to the smart. Why would you be selling here? Tether?
The broader structure is showing a pretty solid foundation for a bullish reversal. However, as good as a foundation may look there are sometimes some cracks. There is no guarantee we go higher, but it is looking more bullish by the day. This is why we have staggered orders to the downside to take advantage of any fake-out to the downside. Often TA's focus to much on lagging indicators like the MACD, MA's, flying bats and the devil's triangle, but we keep it pretty simple.
We look at structure and position first, and we are seeing a bottoming structure in a position where we would expect one. No there is no magical Fibb levels that power our crystal ball, it is just plain and simple looks. It looks good or at least a lot better here. But it is not just Bitcoin'. Other coins are also starting to show some reversal structures and the longer the foundations hold, the less likely we see another significant selloff.
In the short term the 6600 area is the level to push through. This would be like lighting the match. IF Bitcoin' can push up and through to the 7400 level, you will see every TA that was once calling for 2500-4500 do a 180 faster than Tony Hawk do a "Fingerflip Airwalk". They will all post "I hope you bought" and set their sights on 20k. Not so fast, our initial target is around 8k. Let's keep it real here, and get to one level at a time.
Summary:
As the second coat of paint starts to dry we can layout where we want our posters to go. We can start planning for the walls to be ready and look for both swing and additional position trades. There are some coins that have better structure and this is the reason we sold out of a couple coins, and are positioning into others. Often investors hold on to losers hoping they recover and sell winners. BAD IDEA. We are getting rid of the junk, and looking to position in the coins showing the best structure.
Over the past few days short interest has dropped from 32,600 to 21,700 as shorts abandon position after position. I doubt the $200 price spike spooked anyone, but it can not be denied, shorts are getting the hell out like Rats on a Sinking Ship.
More and more large endowments and funds are adding Bitcoin to their portfolio. Princeton adds to the elite endowments that have entered finally. Do you really think others are not? So those retail investors and analysts that have egos larger than the market, are playing right into their hands. Money flows from the weak to the strong, but also the dumb to the smart. Why would you be selling here? Tether?
The broader structure is showing a pretty solid foundation for a bullish reversal. However, as good as a foundation may look there are sometimes some cracks. There is no guarantee we go higher, but it is looking more bullish by the day. This is why we have staggered orders to the downside to take advantage of any fake-out to the downside. Often TA's focus to much on lagging indicators like the MACD, MA's, flying bats and the devil's triangle, but we keep it pretty simple.
We look at structure and position first, and we are seeing a bottoming structure in a position where we would expect one. No there is no magical Fibb levels that power our crystal ball, it is just plain and simple looks. It looks good or at least a lot better here. But it is not just Bitcoin'. Other coins are also starting to show some reversal structures and the longer the foundations hold, the less likely we see another significant selloff.
In the short term the 6600 area is the level to push through. This would be like lighting the match. IF Bitcoin' can push up and through to the 7400 level, you will see every TA that was once calling for 2500-4500 do a 180 faster than Tony Hawk do a "Fingerflip Airwalk". They will all post "I hope you bought" and set their sights on 20k. Not so fast, our initial target is around 8k. Let's keep it real here, and get to one level at a time.
Summary:
As the second coat of paint starts to dry we can layout where we want our posters to go. We can start planning for the walls to be ready and look for both swing and additional position trades. There are some coins that have better structure and this is the reason we sold out of a couple coins, and are positioning into others. Often investors hold on to losers hoping they recover and sell winners. BAD IDEA. We are getting rid of the junk, and looking to position in the coins showing the best structure.
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