Bitcoin bulls have pulled it off again and the price is now in the $9.5k region having successfully hit our previously anticipated target. Just when the majority of retail traders were expecting BTC/USD to go down, it shot up and liquidated many shorts along the way. The bulls are still not backing down just yet. If other major markets continue to share a bullish outlook, we could see another pump in Bitcoin.
There is no denying that the larger trend is bearish and Bitcoin and the rest of the crypto market is primed for major correction after this bullish move comes to completion. However, it is extremely unreasonable to try to short the market assuming that this move has ended before we have confirmation. This is what most traders seem to be doing now considering BTC/USD is trading within a rising wedge.
Most retail traders are so keen on following well known technical analysis patterns and formations that they miss what actually moves markets. This is now a time where we could see retail traders trying to catch the top once again not only in this market but also in the stock market. The S&P 500 (SPX) appears bullish and is likely to see further upside but that won’t stop greedy bears from jumping in front of this bullet train. The same goes for EUR/USD which continues to share a bullish outlook for now. Our focus should always remain on trying to catch the middle of every move and not the top or bottom if we want to be consistently profitable in financial markets.