I would not be worried even if we go lower than the lower bound of the trendline.
Especially if we stay above the previous lows, we still are able to maintain a bull market but then it is simply slower than our current channel suggests.
I do not mind these dumps, I hope there will be more like this.
ETH looks so strong that it is unlikely it will fail. There are simply too many btc in bids - however I doubt the buyers are the smartest people as they market buys 10-30 btc at one shoot driving the price up and making the lending market dry as Sahara and TrueCryptonaire is happy with almost 2 % daily interest payments.
Especially if we stay above the previous lows, we still are able to maintain a bull market but then it is simply slower than our current channel suggests.
I do not mind these dumps, I hope there will be more like this.
ETH looks so strong that it is unlikely it will fail. There are simply too many btc in bids - however I doubt the buyers are the smartest people as they market buys 10-30 btc at one shoot driving the price up and making the lending market dry as Sahara and TrueCryptonaire is happy with almost 2 % daily interest payments.
Bids can easily be removed and asks can easily be added. A rational trader shouldn't really look at the orderbook, because it's the #1 instrument to fool people.
While I agree the orderbook is the cheapest way to fool people with pulling off bids/asks, I disagree with the fact that a rational investor shouldn't look at them.
There are at least two reasons why a rational investor should look at the orderbooks.
1) Game theoretic approach. If there are at least some "fools" who are getting fooled by the orderbooks, their actions make it smart to observe the orderbook.
2) The bids and asks are real - you can anytime make a sharp move and buy/sell into the asks/bids and then even the most fake wall becomes a real wall. Therefore holding fake orders is risky business as they get sometimes filled.
I admit you brought up some solid arguments here and thus I revise my statement. In addition I would like to add that most of the fake bids/asks are often put up far away from the market, which makes them influenceable but quite difficult to buy/sell into.
That's true. A fake buy/sell order has to be far enough not to be executed but not too far to be ignored as meaningless. That's the tricky part here - how far to set a fake order. Especially if the other participants are aware of an opportunity of a fake order.
However, in ETH the large buy-orders are pretty close to market value (only a few per cent drop in a price means you need to dump more than 100 btc worth of ETHs), so those orders are not most likely fakes.