Only sharks feed on the elusive price of the cryptographic market fund

December 19, 2018 Bitcoin

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Markets and prices

2018 was a year of bull marketps and bargain prices. Now, as the year comes to an end, many cryptocurrency traders have discussed the elusive "bottom price" for their favorite digital asset. However, professional traders understand that catching a knife that falls is difficult and that the bottom of the elusive market can disappear in a blink of an eye.

Read also: A look at some of the most popular cryptocurrency traders in 2018

Capture the falling knife

<img class = "alignright wp-image-262525″ title=”Only sharks feed on the elusive price of the cryptographic market fund” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/MUMarch31-300×300.jpg” alt=”Only sharks feed on the elusive price of the cryptographic market "width =" 246 "height =" 246 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/MUMarch31-300×300 .jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/MUMarch31-150×150.jpg 150w, https://news.bitcoin.com/wp-content/uploads/2018/12 / MUMarch31 -768×768.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/MUMarch31-1024×1024.jpg 1024w, https://news.bitcoin.com/wp-content/uploads / 2018 / 12/MUMarch31-696×696.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/MUMarch31-1392×1392.jpg 1392w, https://news.bitcoin.com/wp -content /uploads/2018/12/MUMarch31-1068×1068.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12/MUMarch31-420×420.jpg 420w, https: //news.bitcoin .com /wp-content/uploads/2018/12/MUMarch31.jpg 1600w "sizes =" (maximum width: 246 px) 100vw, 246 px”/>When the market is rising and extremely bullish, it is easy to predict fluctuations in both directions and gain quickly. But when the price of a certain asset has been in a downward spiral for almost 12 months, guessing where the currency will end will be much more difficult. Guessing the exact moment of capitulation is almost impossible and usually only fortune captures extreme prices.

In fact, a digital resource such as BTC lowers the price by a few meters and the value "flash freezes". momentarily. Only a handful of brave souls will capture the deeper wick of the candle. Traders are walking a tightrope by shortening the BTC price with a 100x leverage on Bitmex in the hope that they will capture that elusive background. Some sharks with deep pockets have extremely low orders placed on exchanges waiting to feed on capitulation.

Bets placed on the lowest encryption prices

A big indicator of the "bottom feeding" trend is represented by the short positions placed on various markets that offer trading margins. Short positions BTC / USD are extremely high this week on Bitfinex with 38.488 short films that rest the exchange Tuesday, December 18. Short positions for BTC / USD touched the all-time high on December 7, surpassing 42,000 short films on Bitfinex. Other cryptocurrency markets such as ETH and BCH have also seen a large number of short calls in recent weeks. On the same day of 7 December, ETH / USD shorts on Bitfinex has reached the highest level ever with over 426,000 positions. Even though the ETH / USD short films have fallen considerably since then, there are even more short films today (302,000) than there were throughout the year. This indicates that most operators believe that the lowest price of the best cryptocurrencies has not yet been found.

BTC / USD short positions on Bitfinex on December 18, 2018.

Sharks with deep pockets looking at the bottom

Another place to see hungry sharks waiting to feed on capitulation is the most popular trading orders. Most depth charts it shows only a fraction of what people are willing to pay or sell their bitcoins for order books. However, you can watch the orders even later on certain trades to see all the hungry bottom feeders waiting for a quick flash stop.

For example, on Bitstamp's BTC / USD order book there are about 100 BTC orders or more for something below the $ 2,800 price range. These traders have their fingers crossed that their orders will be filled during those precious seconds or minutes of pure fear-driven capitulation. Choosing a position is a game of assumptions since the price could stop at $ 3,000 or $ 2,800 but it could flash to $ 2,500 in a blink of an eye.

Incorrect lower predictions of BTC

The funny thing is that traders and analysts have been calling the fund for the whole year and not one of those $ 10,000, $ 7,000 or $ 5,000 bottoms have remained for a long time. There was a ton of pitfalls for bull markets and "dead kittens" in 2018 and every time people thought the price had bottomed out. "May 2018 will be the last time we'll see bitcoins under $ 10,000," Charlie Shrem say his 156,000 followers on Twitter on 3 May. In a similar case the next day, the infamous Max Keizer he has declared to his fans on Twitter:

Bitcoin tested the fund at $ 6,000 and is now on track to publish new ATHs – $ 28,000 are * still * at stake in this rally.

In contrast to the opinion of McAfee, BTC has undergone a correction of 82% from December 17, 2017.

The fund could be a quick memory or even years away

The "background" forecasts of the sector's luminaries last spring have been proved wrong and their erroneous predictions, based on fundamental zero, should be considered pure speculation. The fact is that the forecast of funds and tops in the cryptocurrency market is extremely difficult and even when they occur, prices could be quick and painless or last for years. A great example of an evasive price fund was the peak of gold spot prices in the 1980s. Historians will remember that an ounce of gold up to $ 999 touched a maximum of $ 600 l & # 39 ounces that year and some trades up to $ 850. It took 21 years for gold prices to hit a "low" when it hit a minimum of $ 256 an ounce in 2001, losing 57.33% of its value.

After the price of an ounce of gold reached its peak in 1980, it took 21 years for gold at the end.

It took a long time before BTC found the fund at the end of February 2015, going under $ 200 per currency. People will remember that BTC hit a maximum of nearly $ 1,300 for BTC before falling for the entire 2014 and 2015. Yesterday, cryptocurrency prices recorded a good recovery in global markets, which coincided on the same day in BTC has reached $ 20k in exchanges. a year ago. In the subjective evaluations of some people, the BTC nadir has already been reached, although it is possible that the market crisis will continue. The truth is that cryptocurrency funds will be recorded in history, but the prediction or vision of one in which it occurs is largely a matter of luck.

What do you think of the cryptocurrency luminaries that call the bottom for some coins? Let us know what you think about the subject in the comments section below.

Disclaimer: Price items and market updates are for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor is the author responsible for any losses or gains, as the final decision to conduct a trade is taken by the reader. Always remember that only those in possession of private keys have the control of "money".

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