Stockmarkets history is telling us this is likel a short to medium term sell signal
The whole story behind BTCUSD reminds being a bubble. But bubbles gang gets bigger and wider as most traders anticipate. To short the market at any "top" in most cases never works. Usually after the latest top follows a very last top and after this a very, very last top and so on. To short a market like this needs to follow strict trading rules means to implement SL orders or trailing stops. Until now there are almost no ways to protect shortpositions with BTC call options - as i know.
Bitcoin erased, then mostly recovered, about $200 overnight.
In contrast, gold futures have traded within a range of about $150 this year.
The digital currency has had other volatile swings this year.
The crypto-currency hit yet another fresh record high of above $2,300 on Wednesday. That came after it rose 9% on Monday to trade above $2,200 for the first time, after closing last Friday at a then record high of $1,913.
Bitcoin is up some 130% since the start of the year and has risen close to 400% from a year ago as an increasing number of companies seem willing to assume exposure to the digital currency.
It has also become a safe haven currency for political risk. Ironically, the biggest group of buyers are Japanese nationals, holders of the safe-haven yen. Japanese regulators are some of the strictest regarding trading in digital currencies.
So, should you invest in Bitcoin? If you believe what you are witnessing is a stampede then prudence would suggest investors should wait for a correction before getting exposure to the asset.
“To say that the RSI is overbought is an understatement,” an Investing.com analyst says in an article for the global financial site. The RSI, or relative strength index, charts the strength or weakness of an asset based on recent closing prices.
The site’s analyst also points out that stochastics are overbought, posing the threat of a bearish cross and a double top. Stochastics measure the relationship between closing prices and price range for a set period of time.
He says it is anyone’s guess as to when to get into the market. His suggestion: when the digital currency’s price returns to its last uptrend line in late March, probably at the $1,650 level.
(Reuters) - Digital currency bitcoin hit a fresh record high on Wednesday, surging above $2,400, as demand for crypto-assets soared with the creation of new tokens to raise funding for start-ups using blockchain technology.
Blockchain, the underlying technology behind bitcoin, is a financial ledger maintained by a network of computers that can track the movement of any asset without the need for a central regulator.
Bitcoin hit a record of $2,409 on the BitStamp platform and was last up 4.3 percent at $2,363. So far this year, the price of bitcoin has more than doubled.
A key reason for bitcoin's dominance in the nefarious online underworld, say technologists and cybercrime experts, is its size - the total value of all bitcoins in circulation is more than twice that of the nearest of hundreds of rivals.
Also, a big part of bitcoin's recent surge is the increase in demand for other digital currencies being sold in so-called "initial coin offerings", or ICOs. Under ICOs, blockchain start-ups sell their tokens directly to the public to raise capital without any regulatory oversight.
"Bitcoin up 100 percent in under 2 months. Shanghai down almost 10 percent same timeframe, compared to most global stocks up. Probably not a coincidence!", Jeffrey Gundlach, chief executive at DoubleLine Capital tweeted on Tuesday.
Strong demand for bitcoins in Japan has also fueled the rise of the virtual currency that can be moved like money around the world quickly and anonymously without the need for a central authority.
Sentiment: 78% long, 22% short
1.: 1/8 short @ 2450
If ever BTC goes up more will add same later this day and on friday. Parabolic up moves on 80% longpositions usually follow one simple law: Gravity
82,2% (!) long
17,8 % short
3. round: 8/8 @ 2.602
Most trades are 0.0XYZ BTC
A litte bit it's smells still like Pump and Dump. BTC now up to 2.700. next round to short for me will be in Friday. I guess BTC now will see 3.000 first.
Transactions can be watched realtime here and everyone can see that most trades are at 0,0XZY BTC:
A litte bit it's also smells still like Pump and Dump. BTC now up to 2.700. next round to short for me will be in Friday. I guess BTC now will see 3.000 first.
Scheduled next 4 rounds, directely 8/8:
5.: @ 2.800
6.: @ 2.900
7.: @ 3.000
8.: @ 3.000
The price of bitcoin has more than doubled in 2017.
But rival cryptocurrency ether, which runs on the ethereum blockchain, is up over 2,300 percent this year.
Added round "7" - sold BTC. Each positions is opened as "short". I did not traded a lot of shortpositions for a while so until now each trading action more or less was a "buy". I apologize for now using the right terms.
BTC is a special market and has own rules. Whatever might be valid for each other market doesn't need to work on BTC necessarily. In this case i am as a senior trader will be wrong, need to cover this shorts and realize my losses. I guess BTC could have more room still until 3k but not sure. Thisfore i added more shorts now and will add more if we might could the 3k. Depending on this ultra high buy rates of 86% vs. 14% shorts i would suppose that BTC could fall to 1.650 or 1.150. After this time will tell if BTC might go to Zero or to 10.000. Both is possible and i guess everybody familiar with btc knows it.
Bitcoin rallied to a fresh record high of over $2,700 on Thursday.
One analyst said that the cryptocurrency is close to a key level of $2,800 which could signal a correction. The analyst told CNBC that the correction could see bitcoin fall as far as $1,470, marking a 46.5 percent decline.
Bitcoin hit a record $2,791.70 before erasing the day's gains.
At Thursday's record, bitcoin had gained more than 45 percent in a week and more than 180 percent this year.
For me looks like we hat a retest of the former highs and maybe the downmove might start after this retest might be confirmed as "failed". BTC trading is much more challeging than stockmarket trading. There is no quite time, no off time.
I will continue trading with a very small position only and maybe ad or minus more intraday but will not report or comment on it.
Reading the comments above there are a lot of mistakes. I need to apologize again. BTC is a 24 hours trade, 7 days a week.
- I worte above that i need to apologize for --- "not" ---- using the right terms. Shortpositions never gets "bought". Its a sell at the opening and a buy if the trade is closed. For allmost 12 month i am just on the "buy side". I buy to open a trade since almost one year - now i sell to open a trade.
- The average short position is 2.621 and not like written above 1.621.
Ethereum leaped several thousand percent this year to a record in June.
Prices have been falling steadily since then.
Bitcoin prices also fell Sunday amid concerns about a potential split in a few weeks.
"BTCChina, one of China's largest bitcoin trading platforms, announced that it would cease offering trading services on September 30, citing statements issued earlier this month by the People's Bank of China and other regulatory bodies in the country.
BTCChina will stop registration of new users from Thursday, it said on its official microblog.
"We will stop all trades on the digital trading platform starting Sept. 30," it said. Its co-founder, Bobby Lee, told Reuters the move would not affect trading on the BTCC international exchange, however.
The sharp sell-off in Bitcoin follows growing fears of blanket ban on bitcoin exchanges across China after a statement from The National Internet Finance Association of China (NIFA) Wednesday claimed that “financial and social risks cannot be ignored.”
The National Internet Finance Association of China, a self-regulatory agency, established by the People’s Bank of China, said that Bitcoin “is becoming a tool for money laundering” and warned that virtual currency trading platforms in China are not legally established.
Chinese regulators, however, are yet to confirmed any plan to shut down local exchanges but the statement from NIFA supports recent media reports warning that the decision had already been made."
I'm looking to open short position aswell.
Do you think bulls will hold last low or we will go lower?
In my opinion, the price will hit EMA 50 level, than BTC will bounce to retest last high or create new ath.
Tonight i decided to fully hedge the shorts by 120% - i bought more BTC than i need to hedge. BTC is right now a 24 hours trade. If ever you need some hours of sleep you just need to hedge everything. You can wake up and BTC is 500 USD higher or lower.
Looks like your idea might be right. Added BTC, now net long for some minutes or hours. It's never boring to trade BTC - but it needs full attention 24 hours a day. I am going to stop trading on tuesday night, unfortunately.
You are right, that BTC trading is very exhausting espiecially during volatile days, but if you earn money for your work, than everything is fine :D
Right now "the DAX" is on holiday and going nowhere. Same time the DAX is going a few points up or down BTC moves a few hundert USD. At times it's o.k. But i will stop next days probably. All trades until now runs good but luck never lasts forever. I guess the best time to leave is as long trades are successful.