Could you imagine if you just closed your eyes and shorted bitcoin day one futures. You would've been sweating for one day only.
Coindesk is reporting a first-of-a-kind Ethereum transaction on blockchain. I've been hoping for something like this for a while. I think it was a necessary experiment, even though it is really clear that a security will settle first using blockchain technology in the after market. Additionally, the test was run over a decentralized blockchain, but the whole set-up of the different parts of the system made it very centralized and excludes third parties entering the system. But all in all it was a experiment well done, showing the future potential of blockchain technology. It illustrates the vision of ChainBLX to scale such transactions to create a completely decentralized economy, which will include trading of digitalized stocks, fiat currencies, cryptocurrencies, options directly with each other, without the additional step of going through the traditional banking system.
8722 broke. The liquidation has begun as Bitcoin has moved back inside of the volume profile curve of the breakout from previous all time high in 2013 around 1k. The candle with the long lower wick will inevitably be re-tested and I'm sure some longs will look to add there again. If the buy volume on the normal volume bars (bottom of the chart) don't exceed the selling than it will be a short-lived. At the moment it would appear to me that candle with the long lower wick enabled a dead cat bounce to continue passing the bag to people late to the speculative move. Next stop is the LVN (low volume node) / HVN (high volume node) area. If it gives out then we're talking full reversion back to POC, which happens very often once something re-enters an old curve. I mentioned in a prior post that the HVN is large enough to transition into the new point of control (i.e. most active price) and provide support if enough buyers turn out. As far as the volume profile curve for this move off the 19,800 level down here back into the 6800 - it's legitimate . The shape of the curve between the VAL and VAH is that of a "b" (picture the red line as the bubble part of the shape). This is standard for long liquidation.
Quick update showing the volume profile of the move down from 19800 to 6600. Actually there are two volume profile's up - one of the larger move that you guys have seen in my prior chart (which details the current trend) and a tinier one from 3/25 thru 4/1. It attempted to break down thru both VAL's (value are low), but hasn't found enough supply yet for the longer term one, which could lead to reversion back to the smaller POC at 7800. However, I also mentioned before that if this general level was supported (like it was back in February) - you should've seen a buy volume spike that exceeded most of the recent selling and comparably as larger or larger than the buying in the beginning of Feb. Not sure if it's because of the weekend, albeit crypto is a 24 hour market.
The VAL of the smaller volume profile has now shifted down and is exactly the same as the VAL of the larger profile. The POC of the smaller profile also moved down from 7800 to 6800. Still not seeing any buying worth noting at these levels and with a profile that remains in an ongoing liquidation pattern - lower levels still seem likely.
...and then over-night it fails to keep working and breaks back into the larger trading range, confirming that the break above the larger range was some sort of upthrust action. I should have expected that though since this has supply in the background (came into the larger trading range from weakness) and it hadn't shown a sign of strength (SOS). The "Boom" price-stick was the nearest thing to being an SOS but its volume does not stand out on the chart; its only something like the 5th largest volume showing. So it still needs to show a SOS. Of course it doesn't need a sign of weakness (SOW) to drift lower since supply has already been proven in the background. 1-hour sticks:
This month is going to be an important one, bitcoin going to test some important support levels here.
BTX.C is having a rough month already. And it's only the first week of it. But I still have faith (probably a bit too much at the moment) that it will bounce back to 1,000 again. Yes, it will be some time for that to implement. In any case, Any thoughts about the notion these bears rather sell than buy? Don't they have any faith in the market anymore? (Btw, I am very bullish and I plan to buy a few in the coming months.)
Again, I'm using that 12k area to apply the volume profile curve because it's been rejected multiple times. This latest move down to 6k was a breakdown out of a liquidation volume profile pattern that I mentioned in prior posts. It literally transitioned from a "b" shape to "D" i.e. "balance", which favors a further breakdown in the current downtrend. The ensuing bounce to 7800 was a simple re-test of the VAL and shorts/sellers turned up there again to defend it. Bears always want to see that to lend legitimacy to the move lower. A much larger volume profile curve is in play right now that I mentioned before. Once price action moves back inside of an old curve - it begins to revert back to test major levels such as POC and HVN. Market Makers most likely have books at those particular auctions that they still need to close out, but weren't able to during the parabolic rise so they got out of the way.
If you look at my most recent posts - the most near term POC was at roughly $8600. The POC ("point of control" aka "most active price") has now shifted down to 6790. The shape of the volume profile curve (blue/purple) bars is a "b" - which as always is a liquidation pattern. Lower prices are still likely to be imminent.
My apologies guys. Was in a rush when I posted that and had the volume profile applied to the wrong levels. Below is the current update of this move from 12k down to 6k as it broke down out of a "balance" D-shaped pattern. The POC has not yet shifted downward, but there is an HVN that is developing into one. I'm getting the impression that if 6k gives out - that would signal some of the HODL'ers caving into the sell pressure.
