The first thing I want to bring up is I'm a long term bull on bitcoin for several reasons that I won't get into here.
Now that I have that off my chest, lets look at the most important things with bitcoin right now, that is moving averages!
The 100EMA and 200SMA, that is the 100 exponential moving average and the 200 simple moving average on the daily timeframe.
Ever since we has a massive sell off back in early December 2021, we've been weak. We broke down below the 100EMA and didn't test it until December 27, but even then we didn't touch it. The first time we touched it was February 10, 2022 and it was met with resistance.
We were able to overtake the 100EMA but on March 28, 2022, we kissed the 200SMA and rolled over big time. We did one last test of the 100EMA on April 21 and haven't test the moving aveages since.
Why is this important? Moving averages tend to be a moving target for mean reversion. Moving target because by nature, they're always moving. Every day, the target is going to move up or down depending on if the price is above or below the average line.
Next important point: The indicator I use is pointing out that for the first time since BTC was traded on this exchange, we're severely oversold. This is a great time to be accumulating and it's very likely other big players are doing the same.
Next important point: Corrective target met. Can we go lower? Absolutely. If you measure the ATH to the January 2022 low, and take the pullback as a projection (shown on the chart), you'll notice we hit the 123.6% extension multiple times. If this holds, that would be a good sign for significant upside in the coming years.
Next important point: Yes, I said years. This is a daily chart. If I went to you in March of 2020 and told you to buy bitcoin at $5,000 and said it would go to $65,000 you would call me crazy. Well, here I am again saying to nibble on bitcoin here. No upside targets, but I believe there's significant upside potential in the coming years.
Next important point: Trade opposite of the herd. It's as simple as that. Too many bulls? Get bearish, vice versa. Bears ALWAYS want lower and bulls ALWAYS want higher. When there's 80% of traders out there saying "one more low" or 80% of traders saying "gonna make a new high soon" then that is your sign. I've seen it time and time again.
Now that I have that off my chest, lets look at the most important things with bitcoin right now, that is moving averages!
The 100EMA and 200SMA, that is the 100 exponential moving average and the 200 simple moving average on the daily timeframe.
Ever since we has a massive sell off back in early December 2021, we've been weak. We broke down below the 100EMA and didn't test it until December 27, but even then we didn't touch it. The first time we touched it was February 10, 2022 and it was met with resistance.
We were able to overtake the 100EMA but on March 28, 2022, we kissed the 200SMA and rolled over big time. We did one last test of the 100EMA on April 21 and haven't test the moving aveages since.
Why is this important? Moving averages tend to be a moving target for mean reversion. Moving target because by nature, they're always moving. Every day, the target is going to move up or down depending on if the price is above or below the average line.
Next important point: The indicator I use is pointing out that for the first time since BTC was traded on this exchange, we're severely oversold. This is a great time to be accumulating and it's very likely other big players are doing the same.
Next important point: Corrective target met. Can we go lower? Absolutely. If you measure the ATH to the January 2022 low, and take the pullback as a projection (shown on the chart), you'll notice we hit the 123.6% extension multiple times. If this holds, that would be a good sign for significant upside in the coming years.
Next important point: Yes, I said years. This is a daily chart. If I went to you in March of 2020 and told you to buy bitcoin at $5,000 and said it would go to $65,000 you would call me crazy. Well, here I am again saying to nibble on bitcoin here. No upside targets, but I believe there's significant upside potential in the coming years.
Next important point: Trade opposite of the herd. It's as simple as that. Too many bulls? Get bearish, vice versa. Bears ALWAYS want lower and bulls ALWAYS want higher. When there's 80% of traders out there saying "one more low" or 80% of traders saying "gonna make a new high soon" then that is your sign. I've seen it time and time again.