In the BCH chart above, there are repeated attacks penetrating the support zone during a period of consolidation, then close to the end of the triangle, a spring upward, followed by a strong, shallow, sustained downthrust which broke the support. Similar consolidation and breakout has been happening in other major cryptocurrencies (see my linked charts).
2017 brought incredible popularity to cryptocurrencies and the market now contains a lot more people prone to 'fear of missing out' and panic selling. As a result the chances of a currency finding price stability at the end of a consolidation are slim. I think strong fakeouts have also increased in probablility: in situations such as the chart above, professional traders with large accounts can wait for the price to drop as amatuer traders sell in panic, they can then start pushing the price back up.
I sold all my coins yesterday, since several major cryptocurrencies have been consolidating in a similar way recently, and today they are experiencing a similar downward breakout to that of BCH in the chart above. I could have lost out had prices broke from the triangles in an upwards direction, but the cryptomarket as a whole has been coiling for something and I could not, and cannot, call which way it is heading, so I prefered to watch. Now, for me, it is worth waiting for the bottom of this fall to appear. The bounce back up from such a drop will likely be profitable. I may take some risks and ride the brief retracements on the way down.
This may also be nothing more than a slight adjustment in the trendline: still downwards, but at a slightly steeper angle.
Whatever it is, as Warren Buffett might say, "Buy when others are selling". Though perhaps in the World of cyrptocurrency it is safer to, "buy when others have finished selling".
I posted this in education, but I am not teaching; I am learning.
2017 brought incredible popularity to cryptocurrencies and the market now contains a lot more people prone to 'fear of missing out' and panic selling. As a result the chances of a currency finding price stability at the end of a consolidation are slim. I think strong fakeouts have also increased in probablility: in situations such as the chart above, professional traders with large accounts can wait for the price to drop as amatuer traders sell in panic, they can then start pushing the price back up.
I sold all my coins yesterday, since several major cryptocurrencies have been consolidating in a similar way recently, and today they are experiencing a similar downward breakout to that of BCH in the chart above. I could have lost out had prices broke from the triangles in an upwards direction, but the cryptomarket as a whole has been coiling for something and I could not, and cannot, call which way it is heading, so I prefered to watch. Now, for me, it is worth waiting for the bottom of this fall to appear. The bounce back up from such a drop will likely be profitable. I may take some risks and ride the brief retracements on the way down.
This may also be nothing more than a slight adjustment in the trendline: still downwards, but at a slightly steeper angle.
Whatever it is, as Warren Buffett might say, "Buy when others are selling". Though perhaps in the World of cyrptocurrency it is safer to, "buy when others have finished selling".
I posted this in education, but I am not teaching; I am learning.
