Bear market short squeezes have a deserved reputation for being a brutal affair. Simple reason being that anyone with a firing neuron can clearly see the writing on the wall. But if you happen to fall prey to common sense or logical thinking you’re very likely to have your account taken to the wood shed.
/unpopularopinion: Once again retail buys the top and sells the floor. There – I said it.
Chances are it hasn’t escaped your attention that we are living in pretty volatile and fast moving times. It’s by no means a new phenomenon, in fact I can trace back a gradual but consistent ramp up in general nuttiness all the way back to the 2008 financial crisis.
BlackRock CEO Larry Fink recently pulled what I often refer to as an ‘Adenauer’ **. Previously known as a prolific skeptic on all things crypto, Mr. Fink stated in an interview with Fox Business that Bitcoin had the potential to “revolutionize” the financial system.
With the next Bitcoin halving event less than a year away, we are seeing a sudden explosion in excitement for all things crypto. A major trigger event was the prospect of various spot Bitcoin exchange-traded fund (ETF) filings by several financial giants such as BlackRock, Fidelity, ARK Invest, Valkyrie, and others.
I woke up early this morning and as I opened my bedroom window I noticed a white unicorn in my yard crapping chocolate truffles. It looked up, gave me a big smile, and then rode off into the sky on a glittering rainbow. Not a bad way to start the day!
It’s been a tumultuous month with many good as well as bad surprises for the crypto sector. Bitcoin now finds itself back at the $30k mark where the recent rally fizzled out back in early April.
The tape has been boring AF over the past few days which is an excellent time to teach you guys a thing or two about price action. And let me start out by ripping off the band-aid and telling you straight forward that relying solely on indicators – ANY indicator – is HUGE mistake. One that may in fact cost you your trading account.
Take any modern retail trading platform and the ratio between views on the chart tab versus the on the trading tab settles in at somewhere around 7:1. In case you wonder – YES, I get off on exotic statistics, because that’s just how I roll.
It seems that within a single week we’ve flipped from deep skepticism of all things crypto directly to good old fashioned irrational exuberance driven by what seems to be a viral outbreak of FOMO (fear of missing out).