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What about this market?

Looking at BTC last week, I have the impression that there have been attempts to make larger purchases but not entirely successful. The problem is that there are more buy bids than sell bids. Twice investors managed to make larger purchases when the “blood was spilling”, that is when there were drops, and some people sold quickly because they were afraid of major drops. At that time, we could observe a larger purchase volume which caused panic focus. Currently, if someone wanted to buy several thousand BTC in one roll, the price could increase too much, it would cause a loss on the unit price. In these situations, it should be done just like with stocks when you want to buy a large quantity at a relatively good price. Purchases are made in the longer term in smaller batches so as not to increase the price.

On the other hand, the same situation applies to the sale of a given asset on the stock exchange. You cannot dump your entire stake or cryptocurrency you own, because the price would drop too low and the transaction would be less profitable. Then we see a consolidation or a stop of the price in a given range creating some figure. Sometimes we see a triangle, sometimes a flag, other times a symmetrical box. In these situations, contract investors may make a so-called position; “Band to band”, playing both when the price goes down and when the price goes up.

Scalping without leverage?

It is different when someone invests in physical assets. Then he has to sell at the top to buy cheaper immediately, but it is not that simple, and you need to have extensive experience to be able to earn on small price movements. Investors trading physical stocks and catching small changes in price usually do so in liquid markets with large amounts to make the whole operation meaningful, since buying for a few thousand dollars and selling 0.1% profit is not commensurate with the risk. This is the practice of banking institutions with billions at their disposal and access to the order book of their clients. Then you can clearly see where the price will reach and be absorbed by the market. A private investor uses this practice on a leveraged market, having a smaller amount but large opportunities to conclude transactions often exceeding the budget that would be needed without leverage.

BTC in the wedge

The current pattern forming on BitCoin shows us that the price has calmed down and someone is probably buying small amounts in preparation for further increases as the volume of buyers is larger than sellers. We will be able to make a decision after implementing the scenario presented in the picture below. The lines in the picture are on local supports and resistances in which the price can react when the price breaks above the pattern.

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