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RE: Why Bitcoin Could Fall Lower From Here

in #bitcoin7 years ago

Hey @CI,

I have no idea what I just did but I've apparently resteemed your post. Hope that's a good thing.

So you vote trap. Wisdom tells me I should not take the opposing side of the question but I'm thinking opportunity.

The buy walls I saw/see at 12500 were huge. Sure, they could evaporate in a split second but the same psychology operative at the 1K price marks is in play at the 2.5K price marks. And I think it is possible that older market players like me may think in quarters, like 12500, 15000, etc.

JMHO

Please clarify, I think you have said that the declining bitcoin dominance (by market cap) is making you more bullish on bitcoin in general?

Thanks for another interesting and informative vid.

Regards,
Rick

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Rick,

Always happy to see you jump platforms with me. Have dragged you along on a few at this point. Resteeming is basically the equivalent of retweeting, so it's good!

Nothing wrong with taking the opposite side - especially when it's bullish with an asset like Bitcoin. I don't think there's much support for the market til we fall back to that $10,000 - $11,500 level again. Last time we cut through $12k like butter. I'm just taking a bet based on the fact that we cut through what I viewed as a critical support level ($13,750 and then $13,500), but there is plenty of room on the opposite side of the table.

Declining dominance leads to me being bullish on Bitcoin because it means it is cheap relative to altcoins and it has historically bounced back from that (although admittedly there is limited history). I suspect we will see such a situation again where Bitcoin has another pump or dump that leads to the dominance figure increasing again.

Now that you mention it, you have dragged me along from Seeking Alpha to your nascent yt channel and now here. Take it as a compliment because I'm usually not much of a follower.

I don't consider myself very bullish on bitcoin at the moment. I like to trade using buy stops and I don't see anything on the horizon that would move me to place a buy stop on bitcoin at any price below 20,010 (opinion subject to change without notice). The price is dropping under a very aggressive downtrend from 19,890 on the 17th thru 16,490 on the 27th and doesn't look like threatening to violate that downtrend soon. Volume is pretty consistently below the SMA50 volume since the pre-Xmas massacree. There's been two days of apparent support at the rising SMA50 but... I've extrapolated the SMA50 into the near future assuming all future closes equal the current close and that shows me the SMA50 colliding with the overhead downtrend on Friday at 13,428. At the moment I'm not sanguine about what happens then. I've set small limit orders to add at 11,212 and 10,512 then I'll put my full 'catching a falling knife' paranoia hat back on and just hodl until I can see an uptrend.

Regards,
Rick

PS Wishing you and yours a happy and prosperous new year.

Great question! I do believe he has said that as well. It's interesting to see how bullish you can get in a market you think is still overvalued. Lots of fun to see how people handle it differently for sure!

Cheers