This morning's trading action has been insane.
So yesterday I took some gains off the table (deleveraged my long) at $66k because that green candle was the most massive one we've seen in a long time on the daily. I've been slowly DCAing my position hoping to buy back in lower, but the price keeps pumping. It's a little annoying but luckily a friend copy-traded me and got an even better entry point right below $61k so he is killing this trade. The plan is to just hold till the end of the month and maybe into November.
The market likes certainty.
There's a lot of speculation that a Trump victory is going to be good for crypto because the issue has become polarized and partisan, with the democrats opposing crypto to the point of illegally enforcing Operation ChokePoint 2.0 and Trump doing equally stupid shit like launch NFTs and saying he's going to pay down the national debt with a Bitcoin reserve.
https://x.com/BTCGandalf/status/1846041127285121358
At the end of the day it doesn't matter who wins; all that matters is that someone wins and that sidelined individuals and allocate their capital accordingly. Not only will a president be chosen next month, but it's also possible we get another rate cut from the FED, which the market seems to love. Then again I'm told the CPI came in hot so they may delay cutting. Not that crypto really cares in the long run. 2025 is coming and it's going to be the most insane bull market run of all time.
https://www.coinglass.com/pro/futures/LiquidationHeatMap
The last few hours have been INSTENSE
Bulls smelled blood in the water, so what did they do?
They x100 longed $67k to crush $100M worth of shorts there.
Epic squeeze!
How it started >> How it ended
By the time everything was said and done this gigantic squeeze left the degenerate bulls more crippled than the bears. Bulls spent $160M to liquidate $100M. This sent the market into a feeding frenzy, and the only players who won were the day traders who correctly shorted the market after all the bears were liquidated. This type of thing happens all the time, most notably on October 7th when we spiked above the 200 DMA for a short time before getting wrecked down to $59k.
As we can see from the history of long and short liquidations the shorts almost always win on aggregate. Pretty funny huh? Bitcoin is constantly going up but the bulls can't make money because they are too greedy. This is why we trade spot or have reasonable long positions like x2/x3/x4/x5; Not flipping x50.
Personally I'm looking to "buy the dip" as it were and hope we crash back into the guaranteed golden cross between the 25/200 DMA. This is going to happen in two days... and guess what else happens in two days? A full moon into the second half of Uptober. A dip down to around $63k is an epic place to buy in just like $61k was two weeks ago. It's starting to feel like free money at this point I'm already up over $500 on my long bet.
https://companiesmarketcap.com/assets-by-market-cap/
As a reminder to everyone Bitcoin already flipped silver back in March when we were flying high at all time highs. Do not be surprised when Bitcoin is trading above $200k and the market cap flips Apple. Crypto is entering an entirely new league in this cycle and nobody seems to realize what's happening. Those who do see what's happening are in denial or worried about being too bullish. It's happening. I guarantee it. And when it does the shear FOMO will be completely unstoppable. Prepare accordingly.
While it is very annoying that bulls artificially triggered the short squeeze and gifted all the money on both sides to day-traders we still have two even bigger squeezes at both $70k and $72k. If these squeezes bleed into each other we will pump from $70k back up to all time highs in a single violent wick. Of course in all likelihood day-traders will move in to short just like they did today and on the 7th. I may try dabbling in this insanity if I happen to see it go down in real time. Wish me luck.
Epic Battle
In the wake of shorts getting squeezed we can see the overzealous bulls got wrecked just like I reported on earlier. However, the battle rages on and bulls are winning the small fights. Multiple key short positions have been liquidated as we continue to push through these resistance levels that have been in place for 8 months straight. Again, I hope that bears win this fight and we get pushed down to $63k... however looking at the heatmap we can see that all the leverage is gone once we get to $64.1k... so I'll have to buy in a little higher than I wanted.
Conclusion
Golden Cross in two days.
Full Moon in two days.
Resistance is punctured and weak.
Bulls are still complete degenerates.
The second half of October is always where the real gains are made.
The clock is ticking on this bull market. I've been telling anyone who will listen that the opportunity to buy into Bitcoin for huge profits is coming to a close. There's still time to buy now and next month while being able to hold for a year to avoid short-term capital gains. Once this launchpad takes off it will be too late. We've been consolidating for 8 months. Winter is coming.