Bitcoin market analysis, retesting lower support. 11-3-2014 Monday
Market retested the lower support at 1950-2000 on relatively low volume over the weekend; the liquidity was absolutely shit on Halloween day. I was outside (obviously) glancing at the orderbook, 3 points on bitfinex had a bid/ask order of 50 on both sides. I suspect market makers and bots are pushing down prices during this period of time. I am saying this not because I lost money, but because it makes sense. The market trend is down and liquidity is low are two good reason for market makers to move prices without putting up too much of a position.
It is Monday in China and Bitcoin has bounced from the lows into 2000. Since we have hit lower support, we could very well be chopping around this area before we go anywhere. This is bearish simply because we are consolidating at the lows. If the bull support is strong, we should shoot up and retest 2100.
As for my position, I've entered my trade at around 344. I am growing impatient if a reversal doesn't happen soon. The only reason I didn't choose to exit after my stop hit at 336 (would have exit it at 332) is because the liquidity was so bad. I sometimes wish the market would shut down over the weekend or at least Saturday like COMEX or Index futures. Alright enough of my rant, go trade!