BTC Update! Tether imploding? Short Squeeze? What next?
Wow, what an interesting overnight my time. I am still catching up on the tether news so am sure will hear more info as the day/week goes on.
But lets start with charts. Sticking with 4 hour chart from yesterday as the price sat at $6225 or so. They had rejected off 4 hour 26 EMA at $6285 and I was looking for a higher low compared to $6178 or definitely above $6105. They established that a few hours after yesterdays chart with a higher low at $6151. All fine there. Then in order to see any momentum up, bulls needed a higher high compared to $6285. Bulls slowly battled back into low $6200's and then we saw the flood of market buy orders.
Here is where things significantly change and you search for news related events. BTC jumped from $6210 or so to $6810, nearly a 10% move in just over an hour. Strictly looking at charts... positive is they got a higher high compared to $2285. Negative, they still rejected from just below our prior bounce high since our dump from $7400 with that high being $6823. Bulls quickly consolidated down into 6400s where things are now settling down and traders and everyone within the space sit and wait to see what the next move will be. Does price continue back up? Or do we trend back down?
So what the hell happened? A couple of things. News of tether issues have been looming for over a year now. Anyone who has followed me prior to tradingview, know, I am extremely skeptical of tether and do believe it will eventually implode. This is one of the primary reasons I mostly trade on GDax (Coinbase Pro) because I wanted nothing to do with tether. Once TUSD was issued to exchanges, I do now trade small amounts on binance and utilize TUSD over tether (USDT) for holding when not in a trade position. But anyways, it appears Tether had some major issues and fell to under 90 cents. Remember, tether is supposed to be a stable coin, pegged to $1. Each tether issue is supposed to be backed by $1 (one US dollar) in some bank. I believe that is all BS and that the company has nowhere near enough dollars in the bank to back each individual tether and have expressed this for over a year now so won't get into details here. This all occurred while I was sleeping so I am not caught up on the story just yet. Tether continues to struggle as I type this. TUSD, where I hold has nicely pumped because of this which I also find funny but at the same time am hesitant on any "stable" coins and prefer exchanges who have USD like CoinbasePro.
But what this tether issue did do, was force loads of people out of tether and if they didn't want to completely exit market to cash and withdraw from the exchange, they were forced to buy BTC or Alts. Again, anyone following me for long before TradingView, knows, I am also skeptical of MOST alt coins. Doesn't mean I won't trade alts or won't trade what I believe to be a sh*t coin as in the end I am just trading charts and not seeking to hold any of those sh*t coins for long. But left with a decision to buy BTC or Alts, majority chose BTC. So many Alts also showed a quick flush down as people exited for BTC adding to its pump. Then we had the BTCUSDS chart which is the Shorts chart. This saw a huge short squeeze to the tune of 25%+ as shorts are forced to close positions and market buy BTC to cover their short position. This avalanche effect (basically same thing when BTC dumps and stops trigger, shorts dump and those stops trigger) and creates an additional pump to BTC.
Wow, ok. A lot has happened. I did not personally have any stop buys set over night as was not expecting tether to begin imploding over night. Market reacts quickly tho and honestly would not be surprised to see loads re-enter Tether because quite frankly, people do dumb things in my opinion. BTC price would then come back down. If tether however truly does implode or is exposed as a scam or unable to back all the tethers issued, I'd again expect a pump in BTC price. However this now leaves a lot unsure on the market if the primary "stable" coin (that they were using to protect capital when they didn't want to be in the actual market) is exposed and we could see many exit market completely for lack of trust within this crazy market.
Regardless, stay safe with positions. I will be watching market closely this week and waiting for things to settle again before taking any position on since I was not at computer to actively trade the pump last night. I have no reason to chase anything on a hope market reacts bullishly again and will patiently wait for a proper trade set up before entering anything again.
Just My 2 Sats!
But lets start with charts. Sticking with 4 hour chart from yesterday as the price sat at $6225 or so. They had rejected off 4 hour 26 EMA at $6285 and I was looking for a higher low compared to $6178 or definitely above $6105. They established that a few hours after yesterdays chart with a higher low at $6151. All fine there. Then in order to see any momentum up, bulls needed a higher high compared to $6285. Bulls slowly battled back into low $6200's and then we saw the flood of market buy orders.
Here is where things significantly change and you search for news related events. BTC jumped from $6210 or so to $6810, nearly a 10% move in just over an hour. Strictly looking at charts... positive is they got a higher high compared to $2285. Negative, they still rejected from just below our prior bounce high since our dump from $7400 with that high being $6823. Bulls quickly consolidated down into 6400s where things are now settling down and traders and everyone within the space sit and wait to see what the next move will be. Does price continue back up? Or do we trend back down?
So what the hell happened? A couple of things. News of tether issues have been looming for over a year now. Anyone who has followed me prior to tradingview, know, I am extremely skeptical of tether and do believe it will eventually implode. This is one of the primary reasons I mostly trade on GDax (Coinbase Pro) because I wanted nothing to do with tether. Once TUSD was issued to exchanges, I do now trade small amounts on binance and utilize TUSD over tether (USDT) for holding when not in a trade position. But anyways, it appears Tether had some major issues and fell to under 90 cents. Remember, tether is supposed to be a stable coin, pegged to $1. Each tether issue is supposed to be backed by $1 (one US dollar) in some bank. I believe that is all BS and that the company has nowhere near enough dollars in the bank to back each individual tether and have expressed this for over a year now so won't get into details here. This all occurred while I was sleeping so I am not caught up on the story just yet. Tether continues to struggle as I type this. TUSD, where I hold has nicely pumped because of this which I also find funny but at the same time am hesitant on any "stable" coins and prefer exchanges who have USD like CoinbasePro.
But what this tether issue did do, was force loads of people out of tether and if they didn't want to completely exit market to cash and withdraw from the exchange, they were forced to buy BTC or Alts. Again, anyone following me for long before TradingView, knows, I am also skeptical of MOST alt coins. Doesn't mean I won't trade alts or won't trade what I believe to be a sh*t coin as in the end I am just trading charts and not seeking to hold any of those sh*t coins for long. But left with a decision to buy BTC or Alts, majority chose BTC. So many Alts also showed a quick flush down as people exited for BTC adding to its pump. Then we had the BTCUSDS chart which is the Shorts chart. This saw a huge short squeeze to the tune of 25%+ as shorts are forced to close positions and market buy BTC to cover their short position. This avalanche effect (basically same thing when BTC dumps and stops trigger, shorts dump and those stops trigger) and creates an additional pump to BTC.
Wow, ok. A lot has happened. I did not personally have any stop buys set over night as was not expecting tether to begin imploding over night. Market reacts quickly tho and honestly would not be surprised to see loads re-enter Tether because quite frankly, people do dumb things in my opinion. BTC price would then come back down. If tether however truly does implode or is exposed as a scam or unable to back all the tethers issued, I'd again expect a pump in BTC price. However this now leaves a lot unsure on the market if the primary "stable" coin (that they were using to protect capital when they didn't want to be in the actual market) is exposed and we could see many exit market completely for lack of trust within this crazy market.
Regardless, stay safe with positions. I will be watching market closely this week and waiting for things to settle again before taking any position on since I was not at computer to actively trade the pump last night. I have no reason to chase anything on a hope market reacts bullishly again and will patiently wait for a proper trade set up before entering anything again.
Just My 2 Sats!
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