Morning all.
Only about 10 hours left until the $BTC halving and already we’ve seen quite a correction take place.
There were 2 attempts to challenge $10k but that level was rejected and lead to a near 20% correction.
One of the big issues I see from watching this market over the last week is that too many people are not actually buying Bitcoin!
And by this I mean there is lots of interest, but not really in Bitcoin, the interest is in making money from the halving.
This has lead to speculators piling into CFDs and futures positions in an attempt to multiply potential gains and this has left the underlying market easy for big players to move around.
Something like $300 million was liquidated on the BitMex platform when longs got annihilated by the sharp correction on Sunday and that is just one of the margin based futures platforms.
If everyone was actually buying Bitcoin I believe these market dynamics would look very different, and this is another aspect of this halving that is very different to the previous ones.
I’m guessing that if price can’t rally quickly from here we are doing to see further weakness as profit hunters bail on their positions and maybe this leads to further disappointment for Bitcoin fans in the coming weeks.
I had been hoping a positive cycle could take us to around $13k over the next month and test last Summer’s high but with this unravelling already I’m more pessimistic and will be looking to start adding new positions if price drops into the 7k’s this week and could see $6,500 coming if newer entrants bail on what they thought was going to be a sure thing.
Stay safe, thanks for your time.
$BTC $BCH $LTC
