You gotta give it to the bulls, moving from previous high around 314 to 500. That is impressive in only 3 days. I got notified for an update. I updated some of my thoughts the last few days but it got buried so fast lol. I'll pull in all the updates and put it here.
China doesn't have a capital control problem. It is all western media bullshit. Look at China's recent monetary policy. Just yesterday, they allowed individuals in Shanghai to exchange RMB for foreign assets. They are freeing up capital control, not tightening it. CNY to USD recently appreciated by 0.6% in trading. Their objective? Spread CNY to the rest of the world, become the dominate currency in Asia and join the IMF.
Hi all, I will be taking a short break in BTC trading and focus more on the stock market instead; ibankstocks anyone?. I am taking a break here because I am frustrated at the exchanges and also market is illiquid and unpredictable.
I am not good at picking tops. I don't usually try to call it because I don't trade it. However, I believe we are close to a short term top. Sentiment is euphoric on LTC right now. So euphoric that this forum's discussion have been derailed by LTC in the last two days. Top traders on LTC futs are at 66% or higher, that is unheard of in BTC land.
Looking at the 4hr bitcoin chart, the bulls failed to make new intraday high. Each rally is faced with more selling. In addition, I talked about the Eiffel tower pattern that happened when the market went absolutely wild.
For my own trading, I haven't traded much just watching this rollercoaster play out. I have been scalping though, very profitable with this liquidity. Its so short term that I won't be able to update. I do see new opportunities ahead once the dust settles so stay tuned.
The Eiffel tower pattern is essentially a fast price rise followed by fast price fall, effectively mirroring the price rise to the price fall like an Eiffel tower. Price of this pattern starts off choppy, but making new highs gradually. When market participants realize the path of least resistance is up, price develops into a new phase of exponential growth. This high price level become unsustainable and fall until it retraces all of its gain. The pattern was first coined by Chris Kimble, a professional hedge fund/portfolio manage as an example during periods of a bubble.