The Urban Elitist - Markets for Mere Peasants - Crypto, Bitcoin, Forex, Commodities Analysis

Bitcoin reached prices close to $10,000 in anticipation of more regulated derivative product launches like the CME, the influx of institutional capital is at an all time high and OTC dealers should be running dry. Now where will this rally end? $10,000 has been a heavy promoted number by the larger players, usually this means their distribution is around those prices and possibly calling the target makes them credible in the future. At some point it becomes irrational to have any expectations of significant increases, smarter money will pull buy orders and the selling cascade that follows will initiate a full crash, till we see some clear reversal signals though the trend is still up. I think the public promotion of the $10,000 number though will have down pressure on the price, this will create all the more momentum.

Trading and investing is a probabilities game kinda like poker, it is the art of finding and timing the next opportunity and putting the odds in your favor. It is no surprise that a lot of gambling and trading rules are the same and for good reason. Predicting a market is hard, the lower your trading time-frame is the higher the risk of quick draw-downs. Mistakes can come in any form, it can simply be not paying attention, pressing the wrong button or just simply making the wrong judgement. The first mistake is not limiting your size per position, leaving a large part or all of your capital exposed to a single price prediction that could end up against you for some of the reasons stated earlier. A simple question to ask yourself is, do you expect yourself to be accurate 100% of the time and I doubt there is any trader that will answer yes, so diversifying across at least a few uncorrelated positions high and low risk should be a fundamental part of your strategy. This can include...

Bitcoin is in it's final parabolic phase, if you know basic hype cycles and how VC's pump and dump their assets you know the final phase is the fastest and can end at irrational heights. Several Venture Capitalists have called for a price of $10.000 per Bitcoin towards 2018, with an all time high of $7.900 it already came pretty close to fulfilling that. With the CME announcing futures it added extra institutional fuel to the rally, what happens because of the hype a lot of traders and investors come looking to get rich so smarter traders will profit off these swings and combine this with media campaigns. They usually have the big connections to the relevant news outlets as they are big funds with a lot of capital available for these kind of things. Currently the price bounced on a lot of volume around $5.500 and it is currently testing the upper band of the current higher timeframe consolidation range. Breaking the previous high is still very possible considering the mome...

CME just announced they are going to launch futures contracts for Bitcoin due to strong demand. CME is the largest exchange and this is a big step towards maturity of the Bitcoin market, most likely a lot of liquidity will flow into the futures and some large hedge players are going to make use of Bitcoin as a trading instrument. Bitcoin can send money directly from person to person across borders and digitally, also you can store your money anywhere, paper or digitally making it the perfect store for money/wealth and the perfect transfer due to it's decentralized protocol and incentive for users to secure the network. Larger players in the financial markets recognize this too and are always looking for ways to diversify their portfolio, cryptocurrencies are a new asset class and are a great hedge against traditional fiat money. Right now platforms like LedgerX and CME allow for institutions to easily access the Bitcoin market without all the hassle that comes with using the n...