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BTC/USD and The Remoras Theory part one.
Monday Monday, so good to me ... Monday morning it was all I hoped it will be...
Thinking about this past weekend price movement and reading most of the analysis that mention the undoubtful whale's presence in the crypto markets, my intention here is to try to develop a 'theory' that inquiries the high volatility in the bitcoin market and the presence of whales and other players in the market. I mean, there must be more players than just buyers and sellers, or bulls and bears. The trading market just like life itself, isn't binary. If you think it is, try looking at things thru a kaleidoscope.
This is the 'Remoras Theory' part one.
Looking at the four hours chart, btc has been moving between the 100-MA and 50-MA. It isn't weird that the price bounced from 7.4k to 7.7k and then dropped from 7.7k to 7.5. But the way it did it, just like many times before, it's, to say the least, rare. If there's whales in the market looking for leveraged traders to liquidate, there must be remoras too.
Taking the Merriam-Webster dictionary's definition, a remora is "any of a family (Echeneidae) of marine bony fishes that have the anterior dorsal fin modified into a suctorial disk on the head by means of which they adhere especially to other fishes". In other words, "remoras (also called suckerfish) literally stick to the sharks’ skin [...] and when a bigger fish attacks and eats prey, the remora will detach itself and feast on the remains once its host is done" (National Geographic, 11 Aug. 2017). I will get back later to this quote, to explore a trading strategy based on this mother nature's behavior.
Having said that, this morning in less than five minutes, the most important crypto-currency dropped almost what had gained in two or three days. I'm not judging whether that's normal or not -I guess it is-, my point is that the whales ate the remoras right away. Maybe because leveraged traders are naive or rookies, but the fact is that whales ate bullish and bearish remoras indistinguishably, whether because they were confuse or unaware of the whale's way of life. All in all, that seems to be a constant behavior in the market, either a bullish or a bearish market, and we could take some tips from it -to be developed.
First, there are more than two players in the market.
Second, Whales eat remoras all the time with or without subtle manners.
Third, remoras get confused and panic too often and whales know it.
Fourth, maybe I'm too stoned and I'm too wrong with this, but I will develop this Remoras Theory, reading and mixing TA and biology together.
Peace!
Thinking about this past weekend price movement and reading most of the analysis that mention the undoubtful whale's presence in the crypto markets, my intention here is to try to develop a 'theory' that inquiries the high volatility in the bitcoin market and the presence of whales and other players in the market. I mean, there must be more players than just buyers and sellers, or bulls and bears. The trading market just like life itself, isn't binary. If you think it is, try looking at things thru a kaleidoscope.
This is the 'Remoras Theory' part one.
Looking at the four hours chart, btc has been moving between the 100-MA and 50-MA. It isn't weird that the price bounced from 7.4k to 7.7k and then dropped from 7.7k to 7.5. But the way it did it, just like many times before, it's, to say the least, rare. If there's whales in the market looking for leveraged traders to liquidate, there must be remoras too.
Taking the Merriam-Webster dictionary's definition, a remora is "any of a family (Echeneidae) of marine bony fishes that have the anterior dorsal fin modified into a suctorial disk on the head by means of which they adhere especially to other fishes". In other words, "remoras (also called suckerfish) literally stick to the sharks’ skin [...] and when a bigger fish attacks and eats prey, the remora will detach itself and feast on the remains once its host is done" (National Geographic, 11 Aug. 2017). I will get back later to this quote, to explore a trading strategy based on this mother nature's behavior.
Having said that, this morning in less than five minutes, the most important crypto-currency dropped almost what had gained in two or three days. I'm not judging whether that's normal or not -I guess it is-, my point is that the whales ate the remoras right away. Maybe because leveraged traders are naive or rookies, but the fact is that whales ate bullish and bearish remoras indistinguishably, whether because they were confuse or unaware of the whale's way of life. All in all, that seems to be a constant behavior in the market, either a bullish or a bearish market, and we could take some tips from it -to be developed.
First, there are more than two players in the market.
Second, Whales eat remoras all the time with or without subtle manners.
Third, remoras get confused and panic too often and whales know it.
Fourth, maybe I'm too stoned and I'm too wrong with this, but I will develop this Remoras Theory, reading and mixing TA and biology together.
Peace!
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