… “Don’t blame anybody but yourself if you lose money trading, or your coins are stolen because you were careless. Become your own financial advocate. Do your research, learn about the companies you choose to trust with your money, and when the trading bots start flittering around the Mt. Gox order book, or somebody sells a big chunk of coins, go for a walk. You’ve got your big-boy pants on, and big boys don’t panic.”
Heh. Bitcoin showed its power again yesterday. After huge gains in the last days finally a calm-down sell-off came in. The 250 $ level is too strong for an easy, unproblematic break through.
I hope those of you trading short-term strategy have booked profits at one of my weekly targets. And the last one was right at 250. If you are a long-term trader or investor and you’ve got scared by this “whatever fucking irrelevant reason” dump, I’m so sorry. Especially when you didn’t buy back at a lower price. But you deserve it if you are watching every intraday price move and overlook a big picture.
And the big picture says we are still in the bull market. Price corrections between 30 – 60% are perfectly in line with the trend.
Bitcoin price broke $100, ladies and gents ! Bitcoin has just made it. It breached 100 USD a moment back and now the things are starting to be very interesting (not that it’s been a boring time up to now).
While breaking into two-digit price zone (again) a few months ago turned on the attention of more advanturous speculators and investors, the triple digit price is going to attract some serious heavy weight businessmen, who no longer trust in their state-bond portfolio. Hell, not even their bank deposits if they are not personally connected to some high-level bankster.
Of course bitcoin is not the only safe haven. There is always gold and silver. But. These people look also for an investment with the highest potential (profit-cost) and an asset that is moving upward. And bitcoin clearly wins in both categories. Yes, it is “riskier” or more “volatile”. That’s why the next level of investors will be closely watching and step in at a four-digit price.
So what will be the next price development? Good question, I really don’t know. Nobody knows. And never trust someone who claims he knows where the market is heading. But of course almost everyone has some bias or anticipation as regards to the price in the next days, weeks, months.
My bias is up. The longterm and shorterm. As I mentioned when breaking 30 and 50 USD/BTC, daily movements and gains are going to increase again. That means also potential sell offs could be bigger (in nominal terms), but every dip should be quickly bought out and trend up with higher highs resumed. I will put up some buying and selling points for this week later.
Wow. I started to write this piece at a few cents below 100 USD. 30 minutes later the price is at nearly 105. We are living in an extraordinary time, enjoy that!
Wow, guys, did you see that shit happening yesterday evening? Truly, I was preparing some rant about a possible short-term selling points while sending a few BTC to an exchange afraiding of being too late to the sale party.
Actually, one minor profit take target would have been hit (if only I had really spotted that sell opportunity and took the trade in time), but expecting something more would turn into a loss or a break-even at best. Until my bitcoins had arrived and been prepared for the sale, the price was back as if nothing happened.
It was really huge lesson yesterday, same as when the fork event happened. That 20% sell off took two hours, while strong buyers returned the price back in an hour. Is this price action telling you something? For me it means very strong up trend and as I keep saying from 50 USD/BTC break: 100 USD/BTC is a question of days (maybe hours, but you know long weekend is coming) not weeks.
Conclusion: Do not mess with the bull market. And give me some trading platform with good liquidity where it is possible to set stop loss and take profit orders. And of course with some usual leverage. Until that time I’m personally hesitating to day trade this market:)
Btw, today’s buying point at 89.55 would have been triggered. Stop loss at 86.50, first profit target at 94.80. After breaking yesterdays high you know what the next stop is…
A seasoned trader (from Reddit):
“I have been in stocks almost 15 years and there is nothing that gave me more return on investment than bitcoins so far. The only thing that will disrupt it would be a major technological glitch. Think of bitcoin right now as gold when it was $1 per ounce. And by the way.. I sold my gold right before Kuwait was invaded… You just dont know with these things… Just invest and sit on it without emotions.”
“If people are wondering where the price will go watch the european bond market. If bonds become more expensive people will look for places like bitcoins to put it. I am sure wealthy individuals are starting to look into it to put at least part of their portfolios into bitcoins just to do some risk hedging.”
Market makers to add liquidity
As a trader, do you think that proprietary trading firms / market makers will start to trade bitcoins in high volume in the near future?
“If there is a spread they can make money off most certainly.. its a very simple calculation… if there are enough suckers who will buy or sell bitcoin on a big markup then there will be market makers to give that liquidity.”