RE: Bitcoin: Is this a Sucker's Rally or Denial? 🤔 Yes, I'm still here! Read all about where I went and why I'm back 🙋♀️
You're missing a possibility. Actually one that I think it is. It's going to go up and test whatever number it decides to stop at, then go back down to a higher low. Such moments are moments of true panic for people that don't trade...but traders expect them. In hindsight, they're barely even acknowledged, but when they happen people think it might be going down to who knows where.
Of course, the inherent psychology of the Denial stage may very well mean that I am suffering from this Denial right now.
You absolutely are suffering from denial, because you don't seem to realize that it's still a great deal to buy bitcoin now. You get it at $5k, and you sell it at $6k, if you bought 1 bitcoin, that's $1k. Who wouldn't do that deal? That's way more than anyone expects to get buying a stock. Of course, crypto is a lot higher risk.
Just because it might not stay above $6k does not mean it's not worth buying. You just have to realize that it might not stay above $6k if it hits there.
Thanks for the reply!
Option 2 is kind of like what you are describing: setting a higher low. Except in your case it would go up to whatever number it decides to stop, whereas I see $6000-6500 as a breakthrough point where the pattern is made invalid and we switch to option 1
It's based on my experience with how these things tend to go. Previous resistance becomes support, so dropping below 6K soon after we broke it to set a higher low seems less likely to me
I agree that BTC is worth buying at 5K, 6K, etc. I consider it worth buying all the way up to $20K. Just like how it was worth buying up to $1200 previous time
Yeah, I know about resistance levels.
When it previously went up to 20k, it bounced off 5800 abouts, went down past 5300, then went back up to the resistance line around 6100, bounced back, then rode up to $7400. It could do something like that, sideways a bit, before going back down. Or it could bounce back from that resistance a lot farther. It could go down to around $4300. We aren't clearly in a spike yet. It could spike and fall for a while...or go sideways...or just make it's way right back up. Spikes and falls look like sideways action only in retrospect usually. When you're watching them, they look like a heart attack.