Bitcoin Trading 2016: Markets Bounce Bitcoin Follows
Markets Bounce Bitcoin Follows
The week ending February 12 was a tough week for the world’s markets. The headlines are all about recession and negative interest rates. Here is a sample (not edited – just pulled from Google News listings)
- Markets: Risk of US recession rises to top of investor fears
- BofAML: Market sees 50-50 chance of recession
- US recession replaces China as fund managers’ biggest fear
- BofA: Managers rushing to cash up, dumping equities
- Cash Hoards Hit Highest Level Since 2001: An ‘Unambiguous Buy …
The mood all changed over the weekend. It is always hard to tell what it is that changes sentiment. We do know that results from German Banks Commerzbank and Deutsche Bank were not as bad as markets expected. In fact the results were good results. The US payrolls data surprised too. And on Monday everyone woke in a cheery mood and Asian markets bounced
“After falling over 6% last week, markets gained ground on Monday. Most Asian markets moved higher, with the Nikkei 225 index rallying over 6%. Straits Times, Hang Seng, Taiwan Weighted and KOSPI also moved 1% – 2.5% higher. Shanghai Composite, however, lost 1.6% [Ed First day back after Lunar New Year holiday]”
Europe and US followed for a few days and so did Bitcoin as we have grown to expect as a risk asset. Markets Bounce. Bitcoin follows. In fact, so strong was the Bitcoin move that it broke out of the triangle it has been trading in over the last few weeks. Watch the video as we explore the potential trading opportunities coming up.
Key concepts to lookout for in the video is the difference between breakout vs. bounce trading and the risk of false breakouts
Note also the role of the media in playing risk up and down – “Markets Bounce Back 2%. Should investors sell?”
Quote from Business Standard Feb 14
