Respect the Price Action

This fact has been exceedingly frustrating for just about everyone involved, but its meteoric rise and fantastic crash is a familiar story:

A new concept is introduced and supported by a small amount of early adopters. It slowly gains interest by the general public; this interest eventually goes viral; and the masses create a massive bubble. Everyone benefits –  until it pops.  The last buyers lose their profits, their enthusiasm dissipates and they move onto the next fad.

That’s where we’re at now.

BTC has been declared dead, but key players remain in the space. The aforementioned early adopters are one group, and professional traders are another.

Professional (institutional) traders have grown in the last 12 months.  We know this by the creation of the futures market last December and what’s happened since then.  Many traders have profited from the short-side.

While buy interest is much weaker this year, there are real bets being place on lower prices, too.  And this is something BTC never has had to deal with before.

This being the case, we need to respect the downtrend for as long as it lasts.  Once it ceases, there will be plenty of time to profit from the long side.  But not yet.