So BTC has been on a nice swing these past few days.
Call me a purist, but in some ways I hate this.
Why?
Glad you asked.
Here's a one hour chart:
Look carefully here:
That big green candle with big volume spike occurred at exactly Friday 4:30pm Eastern.
Why Friday at 4:30? Because that's when options contracts start executing.
So what we have here is a bunch of short futs or puts that got hit at expiration and all the market makers & contract writers having to cover their positions.
There's 2 fundamental problems with this.
1, In a free market naked positions would not survive. So the fact that they had to buy to cover so much is just showing the degree to which those contracts are rigged.
2, None of this has anything to do with a blockchain. These are paper derivatives pushing the price of BTC around.
I know, that's nothing new. But I still hope these games are killed sooner rather than later.
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If there is no foundation behind the movement, this can be a bear trap for those thinking that the bull market has returned. Still, hopefully, we will not see anytime soon a sellout as fast as we saw the buy-in.
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Entirely possible
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I think the same way, is too riscky to bet for it
You mean bull trap. False bullish price action.
Disappointing that this occurs. But I guess TRADFI traders invade everything and corrupt it.
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But think of all that convenience!
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True. They do efficient systems. And they take responsibility for your crypto, sometimes treating it like their own.
The other thing is that it filled that gap about as fast as it made it on the way down. So, we're either going to bounce in this channel for a while between 19-21k or....we will go back and retest the lows. In this economy, I just can't see it going much higher in the short term. If I had enough to play with, I'd probably risk taking some profits here. But I need every sat I've got so I really can't risk being wrong. I'll just ride it back down like I always do. lol
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I wish that as well, but I doubt it will happen.