The January 17, 2018 new moon is rewriting expectations and redistributing wealth in the cryptoverse and there are millions of dollars to be made in the panic. The January 31, 2018 super moon and eclipse could be a turning point back up. There are ways to take advantage of this; a trader shouldn’t care whether markets are up or down, as long as there is volatility. But first, let’s see where we are.
The 1/1 Gann 45 degree angle from the November 13, 2017 pivot was penetrated on the December 21, 2017 Winter Solstice, heralding the bitcoin bear market. The author wrote on the bitcoin bear on December 20, 2017.
The 50 percent ATH retracement yields the 10,000 zone and 62 percent yields the 8,000 area. Currently, resistance is 14,000, 12,600, 10,000 and support is 9,600, 7660, 6000. It is realistic but not guaranteed that bitcoin will trade around 6,000 between January 24, 2018 and January 31, 2017. The 6,000 zone would be a 100 percent retracement of the November 13 to December 21, 2017 impulsive wave. Wouldn’t you like to get bitcoin for $6,000?
(Source: Trading View)
A good break above the 45 degree down angle from the ATH would bring back the bull market, but this may not happen in January. As for those who bought bitcoin above 15,000, they will have a long wait to break even. Look for despair and expect weak hands to surrender their bitcoin this month.
While Bitconnect’s business model can not be written off as simply a Ponzi, it’s no coincidence that the firm ceased operations yesterday and Bitconnect Coin (BCC) plunged by 96 percent. The decline in the bitcoin price was the reason for the collapse, not the ineffectual cease and desist letters from Texas and North Carolina, hateful Youtube videos and DdoS attacks.
When the markets tanked in 2009, Madoff too, had to give up the ghost. Snake oil salesman such as Vladimir Lange and dodgy websites like Mining Coin Group tend to appear or disappear at such times.
So, how can you profit from the bad news? Go short, young man, go short! This means: Sell bitcoin first at the higher price, then buy it back for less afterwards.
Like the futures market, you don’t actually hold the cryptocurrency. You bet on its price movement up or down. You can go long and short at the same time, hedging your position. This is what hedge funds do in theory, betting on a security while hedging it with another. This way, you can profit whether the price moves up or down.