Hello all, welcome back to the technical analysis about bitcoin. This analysis will cover the bias in long term about Bitcoin and what is my personal opinion about the yesterday's drop that affect the movement of the majority in altcoins.
First thing is that I want to remind you that the price of the Bitcoin has already grown for more than 1500% since the low of $4000 back at March 2020. Whenever the asset has gained for that amount of percentage grow, it's a very excellent movement which can give you a huge amount of profit. There's no one can guarantee that the price may shows us another spike to the upside or continuation toward the all time high again. That's why, entering at current region is not recommended as there's already a huge amount of percentage grow. I personally think that take some profit at this region is way very wise to secure your realized gain.
Second thing is about the market cycle which everyone who involved in this industry must know. During all the 4 market cycle theory, there are 4 stages we need to understand well and it's undeniable is happening on every assets in the world. There are accumulation stage where a lot of smart money entering the market, Mark up stage where a lot of retailer are entering the market because of FOMO, Distribution stage where the retailers' money is getting exhausted and the decline zone as the representation of the smart money and institutions are taking profit over the rally they've made.
With current structure, there is a possibility of the shifting period from the mark up region toward the distribution zone as the curvature on the peak of current movement is getting weaker over time. However, there's another anomaly too during the distribution zone on the 2017 which we know that there was a market stretching period when the price was on the distribution zone which ended up invalidate the decline stage and the price surge even higher toward $20000 zone. But once again, this was just an anomaly that is not always happening and no one can guarantee it. That's why taking some profit at this zone to anticipate the drop is suggested.
The last thing is about the technical analysis which there is a support trend line that it has been holding the current bullish run since December 2020. This support trend line is considered as major support as it will becomes the validation of the future's movement in Bitcoin. Breaks below this support trend line will be the confirmation of the decline zone which could drive the price to the lower zone. But, having a bounce will confirms the anomaly which I've anticipated at the previous paragraph.
I personally had sold almost 50% of my holding into fiat when the Bitcoin was at around $59000 zone and I left the rest just in case I can't catch the bottom again if there is a market stretch in the future. Taking profit is never be wrong as you make what is unrealized becomes the realized. In this game, the most important thing is about 'how you maintain the risk' and not 'how you can predict the price'
First thing is that I want to remind you that the price of the Bitcoin has already grown for more than 1500% since the low of $4000 back at March 2020. Whenever the asset has gained for that amount of percentage grow, it's a very excellent movement which can give you a huge amount of profit. There's no one can guarantee that the price may shows us another spike to the upside or continuation toward the all time high again. That's why, entering at current region is not recommended as there's already a huge amount of percentage grow. I personally think that take some profit at this region is way very wise to secure your realized gain.
Second thing is about the market cycle which everyone who involved in this industry must know. During all the 4 market cycle theory, there are 4 stages we need to understand well and it's undeniable is happening on every assets in the world. There are accumulation stage where a lot of smart money entering the market, Mark up stage where a lot of retailer are entering the market because of FOMO, Distribution stage where the retailers' money is getting exhausted and the decline zone as the representation of the smart money and institutions are taking profit over the rally they've made.
With current structure, there is a possibility of the shifting period from the mark up region toward the distribution zone as the curvature on the peak of current movement is getting weaker over time. However, there's another anomaly too during the distribution zone on the 2017 which we know that there was a market stretching period when the price was on the distribution zone which ended up invalidate the decline stage and the price surge even higher toward $20000 zone. But once again, this was just an anomaly that is not always happening and no one can guarantee it. That's why taking some profit at this zone to anticipate the drop is suggested.
The last thing is about the technical analysis which there is a support trend line that it has been holding the current bullish run since December 2020. This support trend line is considered as major support as it will becomes the validation of the future's movement in Bitcoin. Breaks below this support trend line will be the confirmation of the decline zone which could drive the price to the lower zone. But, having a bounce will confirms the anomaly which I've anticipated at the previous paragraph.
I personally had sold almost 50% of my holding into fiat when the Bitcoin was at around $59000 zone and I left the rest just in case I can't catch the bottom again if there is a market stretch in the future. Taking profit is never be wrong as you make what is unrealized becomes the realized. In this game, the most important thing is about 'how you maintain the risk' and not 'how you can predict the price'
