Talk about a bull trap bear trap bull trap.
Am in Madrid so was not watching market when the tumble came otherwise I would have got the fuck out my long position a lot sooner. Yesterday, I was sitting on a leveraged short position, which would have been a blisteringly good trade....but I got whipsawed about a bit too much my TA 101 A 'skills' told me that market was looking much more likely to break up for a counter trend rally than break down, so I left my short and went unleveraged long. I get off the plane and I find that I am on the end of a 15% haircut. Since I believe that Bitcoin is headed to $200 range, I dumped my coins right away as I refuse to take the risk of hanging back to limit my losses in this nasty shark market. Since then I could have gotten out my long at a whole $12 more than what I sold it, with volume now in sub $450 range that spells out just one thing. Much more downside yet to come.
Let's face it, Bitcoin is looking fucking ugly right now and Bitcoin right now, right at this point in time, is probably the most manipulated market on the face of the planet. I sat yesterday and watched the buying and selling like a hawk and I will tell you, I am quite convinced that the lionshare of the buy/sell pressure during that 470-490 consolidation period is coming from the same source. Was it all just a big fkn short squeeze job? The 510 top Bitfinex inspired top was certainly some shorters foolish enough to leave stop loss orders on the blatantly corrupt Bitfinex, getting robbed fkn blind.
Although I am a believer in $200 range Bitcoins, I am at the point where I daren't take a short position. The market is so hard for a trader to predict, because there are powerful hands at play that have the ability to squeeze every last drop of blood out of this market, whether you are bull or bear. Is this Chinese Bitcoin bandits? Is this Wall St getting in? They are fattening the chicken for its plucking, setting up the market for a fucking.
Does anyone feel the same way I do that Bitcoin is getting too hot to handle no matter what side of the trade you favour? Or am I just a twitchy reactionary cunt who repeatedly deprives himself of making some excellent trades due to jumping around like a bitch to the least little bit of TA 101 or price action that suggests I might be on the wrong side of the trade all along?
Bitcoin right now is looking ugly as fuck. No way is $380 gonna hold over the course of time.... naturally, should too many shorters join the market and we can expect a short squeezing rally right back up to the long term trend line, bringing all the suckers back into long positions that will invariably blow up in their faces. But I don't care, I am out until Bitcoin has taken the kicking that is coming its way and is truly lying in the gutter beaten, battered and dejected. No matter what happens to get bull hopes up, The big take down is still to come. Anyone who genuinely thinks that this is the bottom is someone I can't reason with.
Bitcoin is a market for transferring value out of many pockets into a few and always was. Might be fun when it is expanding and you are getting a slice of the action. Not so great when it is going the other way.
Actually I was sitting on a almost 4 figure BTC short, so I felt pretty good about how the market trading conditions are. You mistrust your own instincts too much. I fight the same battle myself.
