Bitcoin Bloodletting is mean reversion - how will you react?
Sure Bitcoin has dropped this week, peak to trough, from 19500 to 12000.
More painful if you entered the market in the last month or so, but in the context of the 49-day moving average, all this
BTCUSD
market did was revert to its mean price over the last six weeks.
Related, the BTCUSD price was extended 80% above its 49 dma. Same as a stock priced at $20 with its 49dma at $12.
If you believe in the narrative, the technology, the social impacts, or even just believe in your own skill to navigate volatile markets with your hard earned capital - today is a well defined entry point.
If you are shorter term in thinking or speculation, maybe you sell the reaction rally soon to come. Or maybe the visionary among you put in your stops on Wednesday night after seeing the bearish RSI divergence, then you hold some USD for dry powder.
In summation, this type of correction has happened in BTCUSD before, and it is common and to be expected that what has been created quickly can be destroyed quickly. One cannot control a market, you can only control how you choose to react.
How will you react?
More painful if you entered the market in the last month or so, but in the context of the 49-day moving average, all this
BTCUSD
market did was revert to its mean price over the last six weeks. Related, the BTCUSD price was extended 80% above its 49 dma. Same as a stock priced at $20 with its 49dma at $12.
If you believe in the narrative, the technology, the social impacts, or even just believe in your own skill to navigate volatile markets with your hard earned capital - today is a well defined entry point.
If you are shorter term in thinking or speculation, maybe you sell the reaction rally soon to come. Or maybe the visionary among you put in your stops on Wednesday night after seeing the bearish RSI divergence, then you hold some USD for dry powder.
In summation, this type of correction has happened in BTCUSD before, and it is common and to be expected that what has been created quickly can be destroyed quickly. One cannot control a market, you can only control how you choose to react.
How will you react?