BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
"And I looked, and behold a pale horse: and his name that sat on him was Death, and Hell followed with him."

There are two successful buying strategies in trading.

In the first, you ride the tail of a comet; buying with strong momentum propelling you into the stars, your equity curve buoyed by cherubs.

In the second, you watch and wait in monk-like silence, as tormented bulls and bears hack each other to pieces on a bloody battlefield. And when the last falls, all the armor, weaponry and treasure is yours.

Guess which strategy is more appropriate for Bitcoin at this point in time?

We are below the prior month's levels, so we are in a zone where an actionable long-term buy can be considered. NOTE considered...

Where that final low actually falls is of little importance. It will be where it will be. What is more important, is knowing it will come only after the seeds of death have been sown and sprouted, and all those who rushed over 10k with credit cards and second mortgages are in a state of abject DESPAIR; regretting the decision they so proudly telegraphed to coworkers and family, who now mock them, or resent them for their ill-timed water-cooler financial advice.

I have no ill will in capitalizing on the financial loss of the herd, it is simply how markets must move, from those who are prepared to acquire risk to those who are not prepared.

Is the low in? Where will it be? What kind of bottom will form? A more interesting question is... how do you buy this coming low in Bitcoin?

If buying spot, the buy level can be predetermined. In other words, I maintain that Bitcoin is undervalued at around 5k - 6k. If my buy entry is 4k, 3k, 2k, its a bonus. If my buy entry is 7k, it could be a small penalty on my long-term future equity, but no big deal.

If margin trading, you either wait for CONFIRMATION to enter a full position. Or you begin with low leverage, wide stop loss positions that you can afford to keep open.

At the time of writing I see no trigger for either yet.

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