We still see Altcoins pump 20, 30, 40, 50+% everyday, but now its only a handful of coins instead of hundreds. Most altcoins are red on the day and this has been happening all week. Also, my trade alerts are not performing. This raises red flags and suggest to me that the market may be changing.
The idea of pulling out of this market, which has made many people fortunes over the last year may be the last thing on your mind, but I just want you new traders to be aware that the only thing for certain, is that MARKETS ALWAYS CHANGE. You new traders haven't been around along enough to see the other side these things. But Q4 of 2017 spoiled us! I have not seen a market this easy and generous in my lifetime since I started trading in 2007.
The important concept I am attempting to communicate is that, sometimes it's better to risk missing a little action and wait for the confirmation that the market is still healthy/bullish rather than leave yourself exposed to a market that is incredibly overextended (which it definitely is).
The reality is that this market has a LONG way to fall if it decides to turn bearish. Getting cut in half and then some would not surprise me.
Bitcoin has been in a bull market for 2 years now and Q4 of 2017 had explosive growth which could indicate Exhaustion (One last big push before a decline). Bitcoin 13,000 might feel cheap and low to you now… but remember this thing was only $1,000 1 year ago… and $3,000 4 months ago.
I recommend to be more selective with your trades going forward and be ready to pull out and sit back and watch the market. By all means continue trading! Just control yourselves and control the excitement; Leave your mind open to the idea that the market may not be as generous to you in Q1 2018 as it has been to you in the last quarter.
I know this isn't fun and exciting advice. but if it saves even one of you new traders from losing your shirt, I would feel like I have done my job.
Are you a new or intermediate trader looking to learn how to use technical analysis to predict the market and make successful trades?
Do you like my trade ideas and want to learn the techniques I use?
I am planning to do a screen share in a google hang out and teach some basic technical analysis with some Q and A.
If you want to be part of this free event Head over to my discord group
Post in the Screen-Share-Video-Chat-Plan channel times you are available and I will set up 1 or 2 events!
As you can see during the 2 legs down that occurred from 14.4k to 10k We retraced to the OTE zone ~70% of the move before continuing the next leg down. I have marked those 2 zones on the chart below as well as the OTE zone I am predicting we head to if 10k holds.
I will teach Fibonacci retracement and the OTE (Optimal Trade Entry) Zone in my video lesson.