Coronavirus Vs Bitcoin
Last week saw a massive amount of volatility but most of it wasn’t to be had in Bitcoin. The rest of the markets of the world tanked on the coronavirus concerns.
Could this be the straw that breaks the bulls back?
Bitcoin, although having pulled back, has not gone crazy at this point and still looks healthy on the weekly chart. I take you through what I am seeing here and explain why it’s so important to have a plan.
Learn to trade now: https://tradercobb.com/bundles/
Hi everybody, welcome to a new week. And obviously there’s a lot of screaming and cat-shouting carrying on, going on about this Corona virus thing. I want to look at the markets and see what’s going on. I think a lot more of the yelling and sharing going on is because it obviously appears quite serious.
It’s not massive at this stage by the look of it as in terms of massive fatalities. It is obviously horrible. But I just wanted to sort of bring it up because we’ve seen markets across the world hit very substantially. I mean, this is the non crypto market here. Have a look at this.
We’re looking here at the Dow. Now, not suggesting to trade it. That’s not what I’m doing. I’m just showing you the the decline towards lows at 16.54%. That’s nearly in line with Bitcoin’s fall, which is to its lows like 20 odd percent so it’s very low. So it’s it’s a big move. This is a big move, it’s wiped out effectively.
Even from back in 2018 we’re back around those level. This market is not looking quite as healthy anymore. Could this be the straw that breaks the camel’s back? Could be, I don’t know. Let’s have a look here at gold. Gold also had its single biggest fall in a single day down 4.61%. Can you see anywhere else where there is a candle that is that big, maybe over here. And what do we got here, no 3.32 that’s a pretty big one, 3.28 still not 4%.
We haven’t seen a decline in gold like that for a very long time. That could be there. 9.34 there you go that was back 2013 so obviously substantial moves across the board and gold is generally seen as a safe haven in times of turmoil and you can see here you know when the market fell like the stock markets gold fell as well.
Check out silver also look at that for a decline so it was really been stuck; not doing a great deal for a long time. Despite that, some people said this is the one most bullish charts they’ve seen but I guess to each their own since I just don’t see that.
So what does that mean for us with Bitcoin? And will it give Bitcoin the chance to voice its views and just show what sort of an asset class it actually is? Well, let’s just have a look at this. Let’s take a few things into perspective. Of course we do see high low pushing on to 14,000 just below then we sort of went back into a downtrend and over here this higher low only slightly but there are two candles there.
Two candles were pulled back then on to a higher high. Now this is the first pullback that we’ve had I said it this week in in the Community videos and on various other videos that a pullback is healthy and this is a healthy pullback. It’s not not too dramatic and it’s 14% down, same as what other markets have been. This is Bitcoin, a little pullback.
I really hope to see this candle. Now, I had to run $8800 and $8500. It did fall beyond both of those, but it seems to sort of leveled out. Well, I’m not gonna say it’s leveled out. That’s the wrong thing to say. Seeing as it stopped for the time being where it is. Does that mean that it I think that we’re going to see a bounce here? No. I don’t I don’t think at all. I’m waiting to see what happens.
What I am saying though, is that if we do see a bullish candle here, whether it’s a small bullish candle or a big bullish candle, whatever may be, if it’s green at the end of the week, if it is more bullish than bearish, then that will certainly be a positive because we might just find a higher low there to then push on to a very clear higher low if we break the high, the higher high and then we’ve got plenty of room to the upside.
So what factors in to Bitcoin potentially having a very strong one? How can we build out into the case to understand why this may actually be a reality? Well, I think I saw a headline that said $6 trillion walked off traditional markets last week. Could have just been the day but I think pretty sure was last week. Now 1% of 6 trillion is 6,000,000,000 billion into our market in a hurry, would really send it moving?
Why? When you look at Coin Market Cap, for example, and let me just pull that up so I can show it to you. Pull up coin market right here. Okay. And you see that the whole market is $244 billion, tapped that around that 300 billion ish, right? Then we’ve got down here $156 billion in Bitcoin. So you think well hang on 6 billion, that’s not going to do much. But you got to remember how illiquid. Some of these things actually are.
So you remember just how a illiquid Bitcoin actually is. You know, it’s it’s a market that a lot of people hold that they don’t trade it that often. A lot of the big amounts are just being held in Boston, obviously we can go and see. So 1 billion at 1% was to come in and many people saying that to have some exposure to Bitcoin is important if we are to decouple from the rest of the market I truly believe I don’t believe this fall is is driven by the Coronavirus I think it’s just a normal pullback.
I could be very wrong there. But that’s my opinion and I’m entitled to have that opinion and you know, it was over extended it was due a pullback is pullback. What happens next is going to be very very important. If we do push higher, most traditional markets fall, then we will probably see like a waterfall effect the first drip that goes over the rest of them follow and then it was become a flood.
We might just see a very strong move. How I’m acting within this market if that was to occur. Well right now you can see here lower high, lower low on the daily. A pullback in the 9000 is really genuinely on the cards. This isn’t a daily downtrend in a weekly it is uptrending.
And on the monthly here you can see you know we’ve got this bullish candle. We have pulled back in here. If we can push on higher it will be looking very, very good. Indeed. So for me right now, I’m looking at the different timeframe. I know how to read the market. So that’s what I’m doing. I’m using my skills to look at this.
Moved down the time frame out of the four hour. What I’m saying is we have a bit of support through this 8500 region. Now, I’m not suggesting that that’s going to be the support place, the base for which we move high. It could be it’s too early to tell right now. All I can say is that this low to this low we’re very divergent.
And we’ll see this across a couple of timeframe if we go higher I believe we’re convergent on the higher ones, but we’re divergent on the lower. Now this starts to go into an uptrend on the four hour, I’ll happily look for long trades. If this continues to move lower, also happily look for short trades.
And the thing is with shorting it’s just a directional play with FTX which is the exchange that I use at the moment for margin. I also use Bitmex but FTX is where this is from. Yeah, it’s where I trade from. It’s where I get very good at order systems that are very simple for me to use and we’ve got videos in the members area too.
That’s actually been online as well guys, if you are looking for that FTX walkthrough on the TraderCobb YouTube page. And if you want the link to get a 10% discount on your trading fees, it’s also on that video I do believe. If you don’t find it there, just let us know.
But having an understanding of how to short it’s a big thing to have, whether it be in traditional markets or in crypto. Obviously, I just teach other people how to trade in crypto. But I will be keeping a very close eye on this market this week? I don’t know what it’s going to do right now.
I don’t have any orders open right now. I’m playing the waiting game. I’m waiting to see what comes of this and how this week ends. It’s a very, very important week for all markets. So be ready finger at the trigger. And let’s see what happens. Have a great day and jump on a bunch to the free stuff on the website if you wish to have a look around. Take it easy guys. Bye for now.
Categorised in: Free Video