Re: Why trend reversal? -> basic technical analysis! trend lines is all you need :)
TA is a self-fulfilling prophecy.
Kinda funny to see that yesterday very few wanted to buy around 440-450, but now people are fighting over almost $500 coins.
Kinda funny to see that yesterday very few wanted to buy around 440-450, but now people are fighting over almost $500 coins.
TA is mass psychology. When grouped together, humans move in somewhat predictable patterns. TA applies mathematical formulas to this. It doesn't guarantee anything, but it is certainly helpful if you know how to use it.
While I agree that in most cases we can create methods of guessing what's going to happen based on the past, Bitcoin is still at the point where it goes through erratic changes. I think this is all just coincidence at this point.
Also if you would have used the superior line in the graphs i posted for all your trades during this bear market (going fiat and shorting) you would have done perfect safe trades!
Also if you would have used the inferior line you would have guessed the $340 bottom flawlessly!
While I agree that in the very short term (days and weeks) bitcoin can be a little unpredictable, if you use basic technical analysis right the Bitcoin market is a trader's wet dream!!!