Ten Thousand

June 30, 2019

You might be tired by now reading about the 10k level in the bitcoin market. Everybody has an opinion. Where from here; back to 7k or even 3k; or right away to 13k. No worries, we admit that we do not have a crystal ball. We do not want to add to this confusion. Quite the contrary, we’d rather add to your arsenal another principle, on how to react to such hype in the media. Why are we affected by the presentation of such numbers, why can it cause anguish. Why is “Ten Thousand” meaningful?

For one we might suffer from “the fear of missing out”, a natural instinct, which can lead to chasing trades and choosing foolish entries. It takes disciple to refrain from such actions. Another reason is a possible subconscious trigger of deeply ingrained denomination numbers. We grow up, around the world for the most part, with currency bills in denominations of 1, 5, 10, 20, 50, 100 (and others). These numbers have a deeper meaning to us than other numbers. One example would be the success of the 99 cent store. Customers perceived shopping at such a store to be affordable since items cost less than a dollar. The psychological value difference between coins and printed currency. Truth of course is only one cent difference between a dollar and 99 cent.

When studying charts one finds abnormality in trading around such “meaningful” numbers. They can act like a magnet for prices to move towards. Volatility might increase. Breakouts can occur, and so forth…

To demystify of what will happen more likely than not, let us look at recent charts with an objective mind and the above mentioned as an underlying thread.

 

Monthly chart of BTC/USDT, 22nd of June 2019, approaching resistance:

 

Bitcoin in Tether US, monthly chart as of June 22nd 2019

 

The monthly chart shows the 50% retracement level being approached. In our humble opinion a much stronger resistance point than the more arbitrary Ten Thousand level.

 

Weekly chart of BTC/USDT – 06/22/2019, three legs up:

 

Bitcoin in Tether US, weekly chart as of June 22nd 2019

 

Typically after four legs direction runs, from a probability perspective, out of steam. The weekly chart illustrates a retracement having occurred at the 9k level and a a straight move through Ten Thousand.

One can certainly add the subconsciously deep ingrained numbers edge to ones trading arsenal, if aware of it. The following shows our trades taken in real time in our telegram channel around the “magic” number.

 

15 minute chart of BTC/USDT – June 21st 2019, approaching the big number:

 

Bitcoin in Tether US, 15 minute chart as of June 21st 2019

 

Aware of the magnet effect of big numbers we aggressively participated in the market. We exited conservatively not aiming to hold into the expected volatility zone. This method  keeps risk small but takes advantage of the higher likelihood of direction towards Ten Thousand.

 

5 minute chart of BTC/USDT – 06/21/2019, early in on low risk:

 

Bitcoin in Tether US, 5 minute chart as of June 21st 2019

 

At the big number itself we took extremely low risk entries on reduced size of capital exposed to the market, anticipating a breakout/breakthrough. Not trading it as a breakout confirmed and taking on volatility risk, but rather very early in, with tight stops. Than we leave ample room for prices to move and retrace. Again expecting this volatility, there is no room for tight stops here on the running position.

 

5 minute chart of BTC/USDT – 06/22/2019, “once through, let it ride”:

 

Bitcoin in Tether US, 5 minute chart as of June 22nd 2019

 

If a penetration of a significant level seems successful, based on “what was resistance – now becomes support”, we again exposed capital. Again direction is the strongest edge and as such we bought the dip. Let it ride.

This is certainly not the only way on how to trade around such numbers. If you are not prepared with a clearly defined approach on how to act around those numbers, that cause the media to write about these levels in the market, you will find emotions triggered within you. Most of these emotions are scarcity and fear based and feed consequently actions of the same nature. If you desire to act conducive to a proper trading strategy, make a plan and trade that plan.

 

We get triggered by emotions but those can be very costly. The difference between a gambler and a trader is, a trader taking calculated risk and being disciplined, while a gambler getting his emotions satisfied.

 

Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g

 

 

All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

 

 

 

Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.

 

 

Important Trading Risks and Earnings Disclaimers - Terms of Use

 

RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.

 

 

U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.

 

NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.

 

EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.

 

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

 

 

All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.

 

Terms of Use: Your use of this educational website indicates your acceptance of these disclaimers. In addition, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions and trade at your own risk.

 

Tags:

Please reload

Recent Posts

June 30, 2020

June 26, 2020

June 18, 2020

Please reload

Stay Up-To-Date with New Posts

Search By Tags

Please reload

join my free

telegram Group

Mentorship

packages

download my

free book