Bitcoin!
What a wild ride, I lost a couple hundred dollars on a stop loss with leverage trading, thousands of people lost millions of dollars, Bitrue #BTC hit $62K during the price correction. We have plenty of people speculating that the Bull Run is over and many more that say NO, the Bull Run is not over yet.
My last article when I was talking about BTC I was talking about how dangerous the upward momentum was getting, we needed a decent pull back at $52K in order to hold past $60K with out any major turbulence. Sunday night had me rather confused as I was expecting a rather large dump to take place but the price just kept climbing upwards with great momentum.
So, what do I think will happen? Until we hit this major wall of resistance we was headed right towards $62K which to be technical, I called a major correction at $62K and we did reach that on Bitrue. that would mean according to Bitrue Bitcoin corrected $18k all the way to $44K
Now, provided everything keeps going the way it was, we may be within a slight cool down period as we near March before we actually test our previous all time high, whether you want to look at it as Bitrue $62K or the other exchanges that say around $58K either way still a $14K to $18K correction which was significant.
I think that the danger probably will delay the FOMO for a little while longer while corporations and smart individuals take advantage of the dip, the other day we was seeing a sea of red, the traditional markets also seen a sea of red, although today has been a great big sea of green, we still may not be out of the woods yet.
We still have a lot of comparison with the previous bull cycles, we have a surreal possibility of another 15% to 20% correction that could happen, however I really don't want to see a larger correction than this. A larger correction that would be like the previous Bull Runs would have great implications that we are in the same Bull Cycle that is bound to repeat itself again.
I seriously think we are seeing strong market manipulation that allowed for a larger number of individuals to get in on Bitcoin at a reduced price and costed people to jump ship faster than they had FOMOED in. That is just my opinion on what implications we need to watch for, personally I am banking on Bull Run still in effect and I am still eyeing the $137K year high for this year.
I have 3 reasons why I think we seen the major pull back where we did. Tether being the number one reason. We all know that when China's Bitcoin restrictions happened that the China traffic quickly migrated to Tether. We can't necessarily prove this fact, but the charts support my claims 100% take that with a grain of salt, but the facts that Tether was in a court room Monday on some serious allegations of inflating Bitcoin beyond actual backing was a major red flag for high profiled investors.
I believe these investors were smart enough to hedge against the surreal possibility that Tether had been committing fraud, which in turn added to the major sell off of all assets to lock in profits just in case this claim materialized into something worse than that of the SEC VS RIPPLE. Instead Tether paid almost $19 Million USD to New York, USA courts to settle the suit an now the green flags are flowing.
The funding index was above .1% which I am not an expert in this area but major speculation here that investors started pulling out of the markets in order to lower the funding rates to nominal usage levels. We can also add the BOT speculation that BOTS could be to blame for this as well. I am not going to argue against the power of Artificial Intelligence, I know for a fact that if I had a team of expert programmers that I could develop an unstoppable A.I. that could make trillions of dollars.
F2POOL has been largely accused of dumping on the Bitcoin Market by a man on You Tube that goes by Bit Boy, I don't encourage anyone to follow this man for actual advice. I personally watch his channel for the same reason I follow along with all of the pump and dump channels. I have to be aware of which tokens are being manipulate by large groups of individuals.
Kind of similar to how I made a decent return on the XRP pump and dump simply because I knew what was going to happen, I followed the Pumpers and I followed the people who bought XRP for nothing more than to dump at the High. I made decent money off of this. Is it okay what these groups are doing? I guess it depends on what side of the aisle you come from. Personally no difference than Wal Street doing the same thing to hard working Americans 5 days a week, 52 weeks a year except banking holidays.
Now onto F2POOL in case you was blind enough to believe the fuss online implicating them as being solely responsible for "Market Manipulations" I am against large entities whom would have overwhelming control over any network, that would defeat the purposes of a decentralized currency, would it not?
F2POOL is nothing more than a Pool of Miners, Miners whom come from all around the world, they tend to pool together mining resources which greatly increases the pools chance of mining Bitcoin. The more people involved the higher the hash rate, higher the hash rate, higher the chances are of making money.
Now simply because F2POOL sends thousands of Bitcoins to exchange addresses doesn't implicated them of selling off Bitcoin, that would implicate individual miners selling Bitcoin, should we expect people to spend hundreds of thousands of dollars to mine Bitcoin and not be allowed to cash profits to pay bills, eat and live a luxurious life style?
I know I want to invest in mining and I will sell whatever I mine to pay for the cost of Mining as well as to invest in mining even more Bitcoin. So, yeah, when we see Mining Pools distribute rewards with the majority flowing to exchange addresses it can impact the market momentarily. The market sees this as a potential red flag, which tends to correct itself within a day.
Finally, the crowd that has been attracted on the FOMO standards because they seen a dramatic increase in prices and they themselves got scared they would miss the next big wave folded out at the on sight of this dip faster than they FOMOED in.
Where is Bitcoin Now?
Bitcoin right now is about $49.5K and working up towards retesting $52K resistance again, I look for that test to be around midnight and provided we flip that level to a support level we could be headed back to the all time high before Friday. Than again we could be stuck in a sideways trend as people cool down from the major correction that we just witnessed.
Right now on my 4 Hour chart it looks like we are about to be moving towards the upside, that hasn't been confirmed yet but has a strong chance of going up or sliding back down around the lower $46K levels
My Final Thoughts
"Double Digit Corrections Bring Double Digit Gains" Bullzilla Youtuber
I love that saying, also "The Best Time To Buy is When There is Blood in the Streets" unknown.
Two very true opinions that have made me the most money in my history of investing, when you see the next major asset in humankinds history take a deep dive you can almost expect the bounce back effect to be equal to or greater than that dive. I for one am hoping to see $90K from this pull back.
I know we will have a couple different levels where people will take profits, Mining pools distributing rewards that will affect the market prices as well as the FOMO crowd, I think we are good for now on scandals, I know India has been on a role with banning crypto again. I know that India wants to preserve there native currency which what government powers don't? Besides the USA, Saudi Arabia, China and so many more that are currently moving towards the "Digital Revolution" of money.
The biggest coming of technology since the dot com era, we are seeing government acceptance that is mind blowing considering the out look on Bitcoin just at the beginning of 2020 when I was telling people that we would see the stock market crash and money flood into crypto from corporations wanting to safe guard against USD inflation and make some real returns on idle money.
We all know that millionaires want nothing more than money, they want the money they hold to make more money, which is why they stay rich while most of the world stays poor. When you see the Elite rushing to snatch a valuable asset as they pressure political puppets to pave the way, you know you are onto something major.
We have been under attack in this realm since before Satoshi went into hiding or he was assassinated, we will most likely never know what happened to the famous Satoshi. We can see that we are clearly entering the Green Light phase of this major operation where we see politicians that are vested in crypto. States legalizing crypto investing, Countries forming policies that allow for Crypto Currencies to be used.
Companies like Ripple, Stellar, Holochain and more that working hard to change the way we network and devices work with each other on blockchains. We are seeing the scariest transformation of technology since the first A.I. was programmed back in the 60's all of the people whom doubted Bitcoin for years are now the ones trying to buy the dips and take profits to get even more BTC.
We will continue to see negative stories from time to time about crypto that will be followed up by positive stories from the same fake news sources such as CNN just to name one of the fakest News sources besides the New York Times... Just wait for the next decade when they all come out saying stuff like, "I told you this Bitcoin thing was the next bid thing!"
As always, Thanks for Reading, God Bless You and Stay Healthy!
Have fun ! Just enjoy this Business...