Welp, Happy New Year!
Welcome back, And Thanks for reading my charts. As I mentioned before the New Year it seemed as though bitcoin's price was depressed and therefore it was in a downward trend. It found support of a moving average which sent it back on its journey to $100k.
Bitcoin is following a simple bull trend. A trend reversal may happen at about $100k. After it can come back all the way down to $8,000 which can last for a year. But my job is not to predict the price, but to understand the trend as well as the price action to determine whether or not to enter or exit a trade. Bitcoin is a storage of wealth, meaning it will be a place where people will hold their holdings with the intent of it being safe and it appreciates in value. So less and less sellers are created as we go up forcing the price to skyrocket.
So the question is, how do we trade?
Since BTC is in a down trend and just stepped out, it will have to rebuild its confidence with its buyers. The process is simple, and it goes in a wave. The early birds would have purchased the capitulation phase which is buying the bottom and holding it, Its possible took profits already and reshorted then repurchased the lows going on a nice dead cat bounce profit spree. You would have literally made a killing doing just that in the past few days. I think I shorted bitcoin a total of 2 times throughout this process.
The second attempt at entry would not have come until we stepped out of the downward trend 2 days ago. Your purchase could have been at the break of $14k with a either break even exit or a $1,000 stop loss.
And the safest entry for this trade will be none other than a dollar over $16,501, with a $15,000 stop loss and Target of $20,000 to partial your position, then let the rest ride.
Please be safe out there, trading involves alot of risk. And I like to say that it sometimes is more efficient if you just sit there and dont do anything but add. Set a 1 year target and wait. Alot of traders will end up losing more than they started with by making stupid decisions.
Good luck all!
Welcome back, And Thanks for reading my charts. As I mentioned before the New Year it seemed as though bitcoin's price was depressed and therefore it was in a downward trend. It found support of a moving average which sent it back on its journey to $100k.
Bitcoin is following a simple bull trend. A trend reversal may happen at about $100k. After it can come back all the way down to $8,000 which can last for a year. But my job is not to predict the price, but to understand the trend as well as the price action to determine whether or not to enter or exit a trade. Bitcoin is a storage of wealth, meaning it will be a place where people will hold their holdings with the intent of it being safe and it appreciates in value. So less and less sellers are created as we go up forcing the price to skyrocket.
So the question is, how do we trade?
Since BTC is in a down trend and just stepped out, it will have to rebuild its confidence with its buyers. The process is simple, and it goes in a wave. The early birds would have purchased the capitulation phase which is buying the bottom and holding it, Its possible took profits already and reshorted then repurchased the lows going on a nice dead cat bounce profit spree. You would have literally made a killing doing just that in the past few days. I think I shorted bitcoin a total of 2 times throughout this process.
The second attempt at entry would not have come until we stepped out of the downward trend 2 days ago. Your purchase could have been at the break of $14k with a either break even exit or a $1,000 stop loss.
And the safest entry for this trade will be none other than a dollar over $16,501, with a $15,000 stop loss and Target of $20,000 to partial your position, then let the rest ride.
Please be safe out there, trading involves alot of risk. And I like to say that it sometimes is more efficient if you just sit there and dont do anything but add. Set a 1 year target and wait. Alot of traders will end up losing more than they started with by making stupid decisions.
Good luck all!
