Why Are People So Afraid of Bitcoin (Strong Markets) – Take Profits and Use Stops

The Entry Points

Shown beginning in the third paragraph below, is today’s premarket comments. Over and over and over, I keep saying, why do people get so emotional about strong markets, and try to be the “smart guy” who “always tries to pick the top”? Give strong markets and stocks “plenty of room”. Bitcoin has become a very emotional market, like gold in that sense. And there are predictions flying all over the place. Like the ones about “BTC is going to zero“, or the “Cryptos to 5 trillion“. Last Friday in premarket comments, I posted the chart of BTC with the solid support area clearly drawn in. That support was “sprung” on Saturday, it rallied, retested the spring low, and then traded back into resistance today. It’s just a market, so just trade it. We love the crypto/blockchain equities. Our first one we liked was MGTI.

 

From last week’s premarket comments: 

BTC’s volatility is something to behold. As I’ve talked about a lot, this thing with cryptos is very reminiscent, of the 1997-March 2000+ times. People all over the place, for years, were calling for the internet-related stocks to crash. And yes, eventually, they certainly did. The main focus for most people looking back is the crash. But what about the years leading up to it, and all of the opportunities. That time is when I began learning to try to stay away from hyperbole, and just stick to tools – and trade. For people who constantly worry about crashes, do they understand about using some kind of exit strategy – and stay optimistic. Risk control. There will be big, very big, huge selloffs. BTC itself going to zero? It is not remotely my view. Other individual cryptos, absolutely, same as the 1990s.”

Today’s premarket comments:

….Some recent examples, and I’ll explain more in another post – well ahead of time, in the chart in Friday’s premarket, I drew in the support area I was looking for in BTC. (And also the DPW one.) I have BTC accounts setup, and as I told Stevie on Saturday, missed that trade, doing other stuff, but the trade was there certainly – here is the result and now. So for all of the useless emotion and angst about BTC by way too many people – there was a beautiful specific trade setup, +20% and back into resistance. Meaning trade a strong market from the long-side, take some profits (maybe). And why do people freak out about this market, just use stops.

Gold is trading in the range, more stopping action (SA has been discussed) to me, not EA. SA means bounces. There was a huge change in the COT numbers and ….Two weeks ago, I talked about how the “break below 1260 would get pretty rough” – long liquidation of the rally from the early July low into the push thru 1300. I started selling some of that early July gold purchase (talked about in that premarket) way too early at right above 1300 as it then kept going to 1357. I’m now looking for…

The QQQ has the support areas set up for…., potential short-term call option stuff. That big volume….

BTC related – (I’m) long OSTK, back into some resistance. Watching SQ, with the solid PS. Plus RIOT, XNET, GLNNF (long), DPW….

 

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About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

10 Comments

    • It’s a momentum “stock” at this point. Same kind of thing, but much more volatile, happened from 1997-March 2000. Like with AMZN, the “technology” of it got overrun by the momentum chasing. BTC is sidetracked. it looks like. Monero or BTC cash seem to be on track (for now).

    • Yep, I see that, and yes with the SOSes. And there has been the accum and the “bowl”. Not a ton of accum, but good. Be nice if it retested or fell back into the top of the accum, 1.55. Also that mobile payments/apps sector is really growing. And they’ll keep integrating with the blockchain. Also looking at PYDS, we’ll see about a reaction setup.

  1. Pure luck I spotted it up to resistance in PM and didn’t get caught in the pump and dump but ya got to get lucky at least once.

    It’s beyond me why everyone is fawning on OverStock.Com when Pat (huckster) Byrne wants to quit retail and sell out because he can’t compete with Amazon selling toasters.
    Even the paid shill media is OverBoard on him.

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