To gain an edge, this is what you need to know today.
Making Money In Bitcoin
Please click here for a chart of Bitcoin (CRYPTO: BTC).
Note the following:
On Friday when bitcoin was trading around $38,000, we wrote:
Crypto bulls are hoping that whales will take advantage of low liquidity over the weekend and drive bitcoin above $40,000. A move above $40,000 will suck in more retail investors.
The Arora Report writing from Friday has now proven prescient. Whales took advantage of the low liquidity over the weekend to push bitcoin over $40,000. When bitcoin crossed $40,000, retail investors jumped in. Whales knew from the past behavior of retail investors that they would jump in after bitcoin crossed $40,000. This is exactly what happened. Retail investors jumped in, driving bitcoin to $42,000.
The chart shows when speculation about spot bitcoin ETF started. This was a trigger for this leg of the up move in bitcoin.
The chart shows the first resistance zone.
Now that whales have pushed bitcoin over $40,000, bitcoin promoters are pushing as hard as they can to bring in more retail investors to move bitcoin to the first resistance zone. Promoters’ pitch to retail investors is that there are trillions of dollars of institutional money waiting to invest in bitcoin. They give this as the reason for retail investors to aggressively buy now.
Prudent investors need to understand that whales and bitcoin promoters have an agenda. That agenda may not be in your best interest.
Bitcoin halving is coming early next year and that will also push bitcoin higher.
While bitcoin is moving higher, there are outflows from bitcoin exchanges worth more than $1B. On the surface, this seems negative, but this is a favorite technique of the whales to push bitcoin higher. Outflows from exchanges are promoted by bitcoin promoters as a commitment from investors to hold bitcoin for the long term.
Historically, outflows from exchanges have led to a rise in bitcoin.
There are three keys to making money in bitcoin:
Understand the behavior of whales
Understand that bitcoin has none of the benefits on a large scale that promoters have fed to investors
If a spot bitcoin is approved, it will lessen the ability of whales to run it up because there will be more liquidity.
To help those who own bitcoin…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
