Hello all my Crypto traders. I hope none of you panic sold your positions... As I don't follow BTC or any crypto news i am not sure what spurred this much needed sell off, but if you're looking to re-up on your positions this is the time. About a week or so ago I drew a 707 ABCD pattern and the pattern held up but ultimately failed. Now, we have a Bullish Bat Pattern that the 886 level seems to be holding quite nicely. if todays candle closes as a long wick you might be validated to enter a trade set-up based on your strategy and risk appetite. if you're investing in crypto i assume your risk appetite is quite large. now if you like to buy and hold this is the time to go in on bitcoin at a major discount.
Now, wish the Dow Jones Industrial Average or the SPX500 would correct like this because a move like this is freeing up some liquidity in the market. think of it as a rocket ship that blasts off and everyone throws their wood into this burner and the rocket takes off higher and higher and the burner gets so hot that the wooden logs they have burn up before they have the chance to throw their log inside all the while everyone has used up their logs and have to go out to cut down more trees to get more wood. so, this lack of fuel causes the rocket to lose power and it begins to fall. now the burner has reached a decent temp for people to add more wood. to keep the rocket going.
we see this problem in the stock market now as its very apparent that there is more money being printed to pump the market up as the market keeps going higher and higher with no correction (this idea of Quantitative Easing).
if youre a crypto trader and looking to get in a quality crypto then this is your time to add to your position. Don't go run and hide when the market goes on sale when you flood the Walmart parking lot on black Friday (United States Analogy) for the biggest sale of the year.
this is the time to buy!!!
Now, wish the Dow Jones Industrial Average or the SPX500 would correct like this because a move like this is freeing up some liquidity in the market. think of it as a rocket ship that blasts off and everyone throws their wood into this burner and the rocket takes off higher and higher and the burner gets so hot that the wooden logs they have burn up before they have the chance to throw their log inside all the while everyone has used up their logs and have to go out to cut down more trees to get more wood. so, this lack of fuel causes the rocket to lose power and it begins to fall. now the burner has reached a decent temp for people to add more wood. to keep the rocket going.
we see this problem in the stock market now as its very apparent that there is more money being printed to pump the market up as the market keeps going higher and higher with no correction (this idea of Quantitative Easing).
if youre a crypto trader and looking to get in a quality crypto then this is your time to add to your position. Don't go run and hide when the market goes on sale when you flood the Walmart parking lot on black Friday (United States Analogy) for the biggest sale of the year.
this is the time to buy!!!
I wanted to update this idea for all my bitcoin fans. I will take all my cryptos and convert them into bitcoin here pretty soon. i really do think that the 80k target people are putting on Bitcoin is very real now!!! i say this because BTC had a very healthy correction and it is forming a double bottom in an area of strong support.
So, what now?
Well, now we wait and see if BTC can break out to 40k. If bitcoin can break out of 40 k expect a retest of 40k and then its going to be a run-away train. (in my opinion of course.) Now, for all of those that listen to Elon Musk, he has a reputation of using his clout to move the market. He did this with Tesla stock, he did it with dogecoin, and he did it with bitcoin. If your going to buy bitcoin, then buy bitcoin plain and simple. I think that the major institutions are going to continue with cryptos until the digital dollar rolls out before they either buy up all the cryptos or dump them all. However, there is still plenty of upside for that to happen. So, if your risk tolerance can handle it buy it up NOW, because when the ship leaves the dock its not coming back unless its sinking. Am i saying you're going to be an overnight millionaire...of course...NOT, but it will be a nice little kick start to your investing portfolio and investing career if thats your goal. Again bitcoin is on sale, so do not go run and hide come out like its Black Friday and enjoy the discount!