This is for personal entertainment and shouldn't be used as trading advice.
Lets get straight into my thoughts,
There is clear positive correlation with stock markets and bitcoin at the moment, It's no coincidence that everything is happening pretty much on the same day, except stocks are slightly delayed because of opening hours etc
Currently we have no new money flowing into crypto markets since the "Bitcoin 20k Bubble" and most money are veterans or people who joined during the Dec/Jan heat. The current positive correlation can probably be explained by the assumption that the big players controlling crypto markets, are also influential in stocks or have big investments in it.
While most are excited for bitcoin to Moon from here (I am too) , we need to retrace to continue our bull movement into 2018.
However, if hypothetically, the stock markets were to continue a bearish trend from here, we will most likely see cryptos follow in the short term, this MAY CHANGE our bullish retracement into the bearish continuation of bitcoin .
This idea is invalid if stocks continue to go up.
Now, do you think stocks will go up from here?, and if so, do you think Bitcoin is a hedge against the stock market?
If you answered no to both of them, wouldn't the best action be staying cash or shorting ?
Lets get straight into my thoughts,
There is clear positive correlation with stock markets and bitcoin at the moment, It's no coincidence that everything is happening pretty much on the same day, except stocks are slightly delayed because of opening hours etc
Currently we have no new money flowing into crypto markets since the "Bitcoin 20k Bubble" and most money are veterans or people who joined during the Dec/Jan heat. The current positive correlation can probably be explained by the assumption that the big players controlling crypto markets, are also influential in stocks or have big investments in it.
While most are excited for bitcoin to Moon from here (I am too) , we need to retrace to continue our bull movement into 2018.
However, if hypothetically, the stock markets were to continue a bearish trend from here, we will most likely see cryptos follow in the short term, this MAY CHANGE our bullish retracement into the bearish continuation of bitcoin .
This idea is invalid if stocks continue to go up.
Now, do you think stocks will go up from here?, and if so, do you think Bitcoin is a hedge against the stock market?
If you answered no to both of them, wouldn't the best action be staying cash or shorting ?
評論:
Bitcoin has hit 1.168 fib level perfectly and is currently bearish in short term looking for retracement level, If my analysis is right, we should see stock markets in the red tomorrow.
評論:
Stocks have hit a critical support, especially Dow Jones, if we break down this point with volume, I anticipate mass selling for the beginning of short-term downtrend and further reinforces my correlation with crypto. The level of stocks retracement will be significant for crypto as well,
If stocks are under ABC zigzag correction, we will likely to see a bullish retracement of btc at around 0.618 fib.
If stocks continue to show signs of downtrend, I will be looking at lower levels for bitcoin.
Stocks have hit a critical support, especially Dow Jones, if we break down this point with volume, I anticipate mass selling for the beginning of short-term downtrend and further reinforces my correlation with crypto. The level of stocks retracement will be significant for crypto as well,
If stocks are under ABC zigzag correction, we will likely to see a bullish retracement of btc at around 0.618 fib.
If stocks continue to show signs of downtrend, I will be looking at lower levels for bitcoin.
評論:
I just realised, its 4:39pm in the US and stock markets have just closed on the critical line, now it's the time to be VERY cautious, always remember to stop losses.
I'll come back to updated on tmr's markets opening
I'll come back to updated on tmr's markets opening