Be On The Lookout For a Completely Bottomed Out Market

in #steemleo5 years ago

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Bitcoin has bubbled big multiple times now. What happens when Bitcoin is overbought and and all the altcoins haven't really budged? Money from Bitcoin flows into the altcoins and the altcoin bull run is even more volatile than Bitcoin, because their market caps and liquidity are so low.

Now, I've asked myself many times why (during this recent Bitcoin bull market) the altcoins are making no gains during the upswings but take hits during the downswings. I think the answer has been actually quite obvious.

When a lot of the new-money millionaires got rich from Bitcoin they also made sure to set up trading bots and pick up a lot of the stake from the altcoin market as well. The altcoin market caps would be abysmal without these Bitcoin investors.

Therefore, due to the perception that Bitcoin is currently not overbought (it hasn't made all time highs yet) money isn't flowing to the altcoins, but those bots are still doing their thing, draining liquidity from the alt-market whenever Bitcoin is having a bad day.

Isn't this a good thing? Wouldn't you rather have value transferring hands to users who actually want to be a part of these new communities rather than being owned my some Bitcoin maximalist?

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I've noticed a shift in the market.

Normally when Bitcoin crashes, altcoins crash harder. That's just how it is when you consider the liquidity involved. However, today has been a bit different. I believe that a lot of alts are already oversold, and they are going to continue to be oversold in the coming months.

I believe what we have to look out for is when Bitcoin crashes and the alt-market hardly responds. I think this will be the sign that the alt-market is totally bottomed out and ready to come back up. I think we'll witness a moment like this within the next two to four months.

Until then, just stay frosty and pay attention to the market. SBD is still under $1, but it is recovering quickly because no haircut exists at the moment and a lot of people are burning them for discounted Steem.

As far as Bitcoin is concerned, I noticed that $11k currently seems to have good support, and I'm setting up a little swing trade with the hopes that Amazon Prime week (July 15 & 16) might give us a little bump up. It's actually pretty amazing how just one company can seem to affect the entire economy in the short-term.

Going forward, I think the 11k support we seem to have today will fall away from us when July is over. The 10k support will fall from there, and I'm betting that we "tumble" all the way down to $7500 come September. Somewhere along that line I think it will be obvious that the alt-market has bottomed, as these bots have overplayed their position and there is no more liquidity left to drain.

I've set up my flash crash orders from my last speculative post. If I get extremely lucky, I'll be 30k Steem richer when all of this is said and done. If not, I'll try to pinpoint when I think the alt-market has bottomed and buy in the hard way.

I'm expecting big movements at the end of the year just like we always get.

Summer is just a preview of what's to come. We are still almost a year away from the next Bitcoin halving event. This market is just getting warmed up. We'll probably all be laughing about these paltry movements 2 years from now. This is just a practice run.

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How do you set up those low price buy orders? I’m currently only using Coinbase and here, what exchange are you using?

I’m certainly looking for lower prices to drop the gains I’ve made into more coin! Depending on how the prices fluctuate I may sell down to even lower bitcoin so I can maximize on the bottom.

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Very interesting read. I need to go over it a few more times to wrap my head around it. But, I do want your opinion on converting sbd to steem. I only have 20ish right now but is it better to hold steem now or sbd. I didn't quite get what you meant by discounted steem and people converting. I'd like to take advantage of the best option. Im approaching 1500 liquid steem and it's burning a hole in my pocket. I kind of want to power up and delegate to steem leo bot but also want to hold out and possibly diversify. If btc falls away in the fall I may want to jump in there with what would be at that time around 2000 steem.

He refers to the fact that SBD is pegged to 1$ and any of the peg coins when they aren’t at the 1$ value it’s worth investing in / keeping. When the price rises, goes to 1$ or over then you make lots more off it since you got it under valued.

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I don't know how to say this, but a lot of people here will benefit more if you somehow showed how to make these trades you speak of. I know I'd catch up hopefully, but this could go a very much long way if there was a steemleotube videos made or something like that

All in all, this was a very informing post, you opinion is highly valuable, thank you.

So you said

as these bots have overplayed their position and there is no more liquidity left to drain.

Will there ever be no more liquidity left to drain?

I’m asking him the same question lol would love to know how he does it! Hopefully it’s not scripting, I am not comfortable doing that.

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I'm the noobest noob, but I can learn fast....i hope...when I watch...its a win for me if I watch what is right

Im starting to Script..

Liquidity bots just earn quite much compared to me 21 yrs old student. ^^

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Wow, the day when Bitcoin plummets and the alt market stays cool will be one to remember.

It is really a testing game of patience, to wait for the market to grow. As I am not a trader, I have started to focus more on what I have right now and how I can make the best out of the status quo with Steem. Interestingly, despite the super low price, I had never as much fun, motivation and hope for the future of Steem as right now.

When do you start buying Steem? I should probably hedge myself some SBD and wait for the right moment to strike myself. You seem to be a fan of SBD yourself.

We did have a rather large pump from 3,500 to 11,000 I would consider us at either the end of that chart and instead bouncing around between hope and optimism at the moment. 2020 which is honestly not far away will see the part after optimism. There are a number of catalyst to support it.

Good post man. I agree with you. The alt season will come back again.

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Isn't this wheel supposed to be spinning while we throw darts at it?

What does that mean?

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That's exactly what Ive been waiting for!

Seems as my patience wasnt too much and I didnt wait too long.

Crash! Come at me!

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While the btc Halving still takes some time, the ltc Halving is almost here!

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@edicted, In my opinion many wait for the December because many times that month became the pleasant season for the Cryptocurrency Space.

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Ok just one question sir @edicted
Suppose after 2 months the altcoin start to push up, then considering steem price as 0.28 usd (as of now) how much it can push itself? Do you see STEEM trading atleast 1 usd per steem before the end of 2019?

By the way, great content and very nice words have been used. Thank you.

What is your prefered way to convert sbd to steem?

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