Bitcoin. What happened?

By 27/11/2020News
Morning Stock News

Gold  1809,50

EURUSD   1,1927

DJIA  29836,50

OIL.WTI  44,86

DAX   13276,81

The red candle in the graphic below speaks for itself. It’s a terrible day for bulls if they use their leverage. And if they did, they could zero out their account. The main question that our subscribers are now concerned about is: “What is it? A simple correction or change of trend”?



On Tuesday and Wednesday, the price of the first cryptocurrency rose to $1,900. It seemed a little more, a little more and will break through the absolute maximum of $20,000. In anticipation of this event, a huge number of buying positions with leverage were opened in the market.
What happens when everyone is waiting for the same event? That’s right. This event is most likely not happening. It happened on Thursday as well. The evil market couldn’t just let everyone make money. What’s more, it was very easy to take money away from bulls. That’s what was done.
When it fell below $18,000, many averaged, then it happened again below $17,500, then it happened again below $17,000. Further downwards the movement was already at the closing of the stops and margin calls. When there was no one else to sell the bitcoin, the price was bouncing upwards by more than $1,000 at the moment.
The most important thing was to understand who was buying the huge amount of bitcoins that were sold. Most likely, they were institutional investors who took the situation as a gift from heaven. When the market is growing rapidly for several weeks in a row, it is very difficult to buy a large volume of BTCs. But this is a great thing to do at a sharp drop. And the entry price is much better than in the last 10 days, when the market simply exploded with purchases made by various funds, public companies for their clients.
If we are right in the analysis above (and we do not know it yet), the level of $20,000 will be taken quickly enough, only in longs instead of part of the public, there will be other ‘smart money’.

What awaits us today?

11.00 EU consumer confidence level for November
11.00 EU business climate indicator for November

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.