Hello Everyone,
I have been seeing a lot of people saying that the bull market is over. I am still very bullish and for the last 3-4 weeks I have been calling for a drop to around the $45,000 area. This thing is just getting started. Let's go over a few things.
1. There have been 2 other bull markets all lasting about a full year from their previous all time highs. Why would this one only last 4 months?
2. Both bull markets have experienced several 30-40% corrections back to the 20 and 50MA on the weekly chart. A correction back to the low 40s makes sense.
3. I have posted a very similar Ascending Wedge around the same timeframe where bitcoin had a break down followed by a 2 week sell off followed by a massive climb. We have had the break down of the ascending wedge, now I am looking for 2-3 weeks of sell off then a large run upwards.
4. Bitcoin has not yet tested a weekly MA. In both previous bull markets we "danced" along and between the 20 and 50MA several times. I believe for this run to be healthy, bitcoin needs to see a correction back to the MAs.
5. Institutions, tech companies, etc mostly bought around the $40-50k area. Why would they sell for a loss or ride this wave to walk away with barely any profit % wise.
I believe we are currently where the white circle is on the 2017 weekly chart. It is around the same timeframe with similar price action occuring.
Please take a step back, relax, and look at the macro view. If you want to capitalize on this drop I suggest using a DCA strategy or averaging down. It is very difficult to catch the exact bottom.
As always. be patient, use risk management, and good luck trading.
I have been seeing a lot of people saying that the bull market is over. I am still very bullish and for the last 3-4 weeks I have been calling for a drop to around the $45,000 area. This thing is just getting started. Let's go over a few things.
1. There have been 2 other bull markets all lasting about a full year from their previous all time highs. Why would this one only last 4 months?
2. Both bull markets have experienced several 30-40% corrections back to the 20 and 50MA on the weekly chart. A correction back to the low 40s makes sense.
3. I have posted a very similar Ascending Wedge around the same timeframe where bitcoin had a break down followed by a 2 week sell off followed by a massive climb. We have had the break down of the ascending wedge, now I am looking for 2-3 weeks of sell off then a large run upwards.
4. Bitcoin has not yet tested a weekly MA. In both previous bull markets we "danced" along and between the 20 and 50MA several times. I believe for this run to be healthy, bitcoin needs to see a correction back to the MAs.
5. Institutions, tech companies, etc mostly bought around the $40-50k area. Why would they sell for a loss or ride this wave to walk away with barely any profit % wise.
I believe we are currently where the white circle is on the 2017 weekly chart. It is around the same timeframe with similar price action occuring.
Please take a step back, relax, and look at the macro view. If you want to capitalize on this drop I suggest using a DCA strategy or averaging down. It is very difficult to catch the exact bottom.
As always. be patient, use risk management, and good luck trading.