By John Miller
Wednesday the 17th of January 2017
Despite the sterling efforts of the Asians this morning, European trading has failed to walk Bitcoin back from the 10K cliff during the day. Now all eyes turn nervously to America, which is just waking up.
I liked the positions which I took during the day, which were all either holding up well or advancing solidly. Neblio in particular was going gangbusters, but on a board where almost everything is red, and where everything will get savagely discounted again if Bitcoin drops overnight while I am asleep, it was all starting to seem too much like gambling to stay at the table.
In the morning I will re-enter the crypto market, happy to pay a premium if America has given the board a bump while I was dreaming – but the other scenario, perhaps the more likely scenario, it that we break under $10K again – and where to from there?
For this reason I have cashed out much of my holdings during the day. We are playing by bear market rules now – and as any trader can tell you, in these conditions cash is king. Yes – reprehensible fiat.
I am still keeping a good portion invested in Bitcoin overnight though, ready to go first thing in the morning if we are back in positive territory again, and looking to buy the best coins.
The worst-case scenario of course is that I wake up to Bitcoin 9, Bitcoin 8, or even Bitcoin 7, if America has a meltdown. Although I think Bitcoin will bounce back hard and hit 20 again this year, the current bear run probably has not fully played out yet. It is ominous that almost everything has stayed in the red all day – and you would be foolish to ignore it.
For me this is a lot like when I pulled out of the Bull Run just before Christmas, only those were much happier circumstances. In both case there were plenty of warning signs that carnage might ensue – and it always pays to follow your gut instincts if your head is screwed on straight.
Tonight it seems there will be an inevitable breach of 10 again, and with no Asian buying for many long hours to snap the Board back above 10, I can envisage a scenario in which the Americans bid King Coin and the Board into a panic spiral while I am sleeping.
I hope I’m wrong, and whatever happens I have no intention of giving up on Crypto. See you in the morning lads. Hopefully it is a board full of green, and I’m sheepishly buying back in at a premium.
Full disclosure: John Miller’s IRL name is Frank Faulkner. I’m an Aussie and when I’m not obsessing about Conservative politics or defending Trump I also enjoy various sports and Christian activities