Bitcoin accelerated its upward movement, reaching over $63.7K in intraday trading
For the last 2 months, Bitcoin (BTC-USD) has been trading sideways; breaking past the $60K mark only to go back down soon after. During this period, there have been downward breakthroughs and upward breakthroughs. The $61K resistance took a while to break, as BTC was slowly consolidating over $50K.
A lot of leveraged positions were wiped out today; with one single investor wiping out $10 million in a Bitmex-XBTUSD trade. With Coinbase’s being only hours away from being publicly traded, it didn’t make sense to be in a short position.
Some crypto analysts believe that retail and institutional investors are becoming more and more interested in Bitcoin and cryptocurrencies in general, but they should be wary of the high volatility of this asset class and the vulnerability of Bitcoin prices. There are around 1,000 individuals who own 40% of the Bitcoin supply, and these whales can move the price action in a direction that is more favorable to them. Leaving the small-time investors either on the sidelines, stuck with FOMO, or making them suffer heavy losses on overleveraged trades.
If you are looking to get in a long, I would wait for the 24h candle to close. This candle would indeed confirm that we breaking out into new all-time highs. I wouldn’t be surprised to see the price go below $60K again in the next 24 hours; looking for a new floor. But as Coinbase goes public and the valuation surprises everyone, we could very well see Bitcoin hit a new, higher all-time high. It could bring an unprecedented inflow of new traders looking to get their hands on digital gold.
All of this will be accentuated by the low available supply of BTC
Watch for the FOMO, be wary of the FUD (Fear, Uncertainty, and Doubt), and learn how to dollar-cost average. Recently you might have heard about the immense amount of energy resources that the cryptocurrency ecosystem is monopolizing. But what they never tell is the amount consumed compared to similar ways of transferring money.
Yes, Bitcoin mining can be dirty, and over in China, it certainly is. China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity.
But it doesn’t have to be that way. In the future, Bitcoin will be mined by renewables
Canadian Bitcoin mining company Bitfarms ($BFARF) has an edge on the matter. Their power-hungry enterprise is powered by Quebec’s almost 100% hydroelectric grid. Which is 100% renewable. And as you can see here, Bitcoin’s energy usage is a very hot debate. But it’s just mind games, the media, and the traditional banking system trying to induce fear in the little fish.
They are just trying to grab Bitcoin out of the hands of the FUD-washed panic sellers. Don’t fall for these traps. The best you can do is to continue to add to your Bitcoin position over time and hold. Don’t FOMO buy, don’t FOMO sell, and don’t listen to the media trying to spread FUD and scare you.
They are not your friends, they are not looking after you.
Despite the soaring price of BTC and the increasing adoption, Bank of America released a survey Tuesday morning that shows 74% of fund managers think bitcoin is just a bubble. Meanwhile, just 7% of those surveyed see equities such as Tesla stock, in a bubble. That should be telling you more than enough.
Over the weekend, Bitcoin had a 1st touch rejection of the $61,336 level before gaining it as a level of support. From here I am expecting Bitcoin to potentially retest the $61,336 level before moving upwards to the $68,361 (3.618 Fib) untouched new high all-time high. Overall, after having so much resistance around the $60K zone, I can see it becoming the new support.
Control your emotions
If you experience excitement, anger or disappointment as you’re trading in the market every day; you are trading incorrectly. And as a result, you are probably experiencing too much emotion. And those emotions will play with your mind; make you overleverage yourself or/and not let you get in or out at the right time.
If you trade properly and hedge correctly your positions; your mindset should be calm and clear, trading should be rather boring.