This is Why You Buy the Pullback of New Highs and Not the Breakout of New Highs (BTC Analysis)
Yes! Bitcoin 10k - ugh wait a second, what just happened? I hope you are not one of the people asking that question.
For many months people have been calling for bitcoin 10K. I was in the same boat and looked forward to it.
Buy the Journey Not the Destination
You want to purchase in route to a target, not when the target has been reached. Once the target has been reached is when you likely see a break in the action as all the energy has been used to get to the destination, now a breather to re-energize is needed.
Don't buy exhaustion, buy accumulation.
Looking at the daily chart of BTC you can see we had 5 straight up days as we approached 10k. Basically a straight rip from 8,200.
Then we got today's crazy rip through 10K and the euphoria sent BTC parabolic to 11,485 in about an hour.
We call that a blow off top. You want to sell those not buy them.
Where do we go from here?
Looking at the hourly chart 9,500 is a level BTC needs to hold if we do not want to see the likelihood of lower prices.
Of course anything could happen, we could turn and rip right back to highs or crumble back down to 8,200.
Crazy Market Indeed!
Some things I use:
- 1broker to trade stock and currency using my bitcoin
- Bitconnect to earn daily interest lending bitcoin (risky investment though)
Best Regards,
Disclaimer: All content in this post is my opinion and for informational purposes only.
I see you're using bitconnect...I'd say it might be time to jump ship soon. What do you think?
I think as long as BTC is in a bull market than BCC will keep rolling. I've gotten my investment out so am free-rolling at this point. It will blow up at some point but I think we still got quite a while.
Plus, 5% of a portfolio should be in super speculative stuff so I have 5% of my crypto portfolio in it. :-)
Guaranteed it blows up at some point. But you know and understand that, so BCC on and try not to get too much stuff on your shoes when the BCC sends a cloud of debris into the air
Exactly. They key is to pull the profits out not re-invest them. I pull the interest gains out every week. It has made for great passive income. The people that plow every penny back into it are the ones with a huge paper profit that goes poof!
No should expect any crypto or stock to climb without stopping. 10k is a huge psychological marker. Of course, Bitcoin is going to climb in the long term, but we can't say that Bitcoin wasn't due for a correction. I don't know if this is "the big one" but I still think it's a decent buying position. I personally just put my money in other cryptos.
I'm just holding and not even minding this... ehmm... "minor" drops anymore :D
Hi @scaredycarguide
Its been amazing trading bitcoin over the past few months... Got off yesterday of all positions... Have a looks:
https://steemit.com/trading/@aarcee/bitcoin-trade-btc-usd-30-nov-2017
Thanks
Right? It's crazy! I agree that you should buy for the journey. Occasionally I jump in for some "hopefully" quick gains. But Im the type of person who doesn't sell until I make profit.
Given my trading background, I have also made some trades for quick gains, but its based off the same principles. Buy the consolidations and pullbacks and take profit on the bounces.
What was the deal with the huge selloff this afternoon? Went from like 11k down to 9k in the span of an hour. Random? Planned?
Blow off top. That 10k was a psychological level so once it broke people are like "oh shit I gotta get this" which gives it that last kick on a move that was already overextended.
Coinbase went down at one point from all the traffic to its site.
BCH couple weekends ago made a similar move, went parabolic over a one hour span and then crashing down.
What is the next psychological price? 20k?
Great analysis as always @scaredycatguide. It's usefully to see some dispassionate discussion based on charts rather than the emotional behaviour we as humans all tend to engage in. It can be hard!
Thank you for bringing this to light ! I agree with this 100% ! “ Buy even when there’s blood in the street , even if that blood is your own “ . Buy when EVERYONE else is selling , Sell when EVERYONE else is buying . Don’t be late to the party !
What gets me is the huge volume of selling as the price dropped from $11,000. As the price went lower, even more people sold.
If you wanted to make money trading that last spike, you would have had to get in and out in three hours. That is not always easy to do.
Like you said, that blow off top was a good time to sell (if you are a trader and not a HODLer)
HODLers do not worry, bitcoin is going to have a lot more people getting into it, and thus much higher prices in the future.
Yes, long-term BTC will be much higher. What I'm doing (and sharing with others) is strategically buying pullbacks as I build bigger and bigger positions in cryptos.
Occasionally I make a trade since I have a background in it. Like when BCH went parabolic in a two hour span few weeks back. Sold the rip, bought back on the next candle 1k lower...wish that happened all the time :-)