So that you don't sweat every little up and down move, keep an eye on the bigger picture, it helps you look at crypto in a less stressful way. The above is the 1-week chart, it helps you see where BTC has been for the last few years and more or less see where it wants to go in the future. My goal is to jump in once we hit that green X at the end of the yellow line -- which is the 50MA -- with a percentage of my capital and jump in 100% if we hit that green x at the end of the white line -- which is the 200MA.
The green line which is also the bottom of the triangle represents the difference between the bottom and a total meltdown of the crypto market. If BTC was to hit the last X which is also the 200MA it has to stop at the green trendline line, it can dip below it a few times but not for too long. What happens if it dips for too long? It will drown, it will take years for it to go back up and many of the smaller coins will disappear. This scenario has happened before to Silver and it is well-documented how it plays out.
The redline or top of the triangle represents nothing but good times. If we go over it, it is a true indication that we are going to have a parabolic move up. I would think that there will be fuel for 20K for sure. One thing to note is that triangles are to be traded on a breakout. What does that mean? That means that you only put your money in once it has exited and gone over the red line. You never buy where we are right now(which is near the top) it is too risky, the odds of going down are high.
In conclusion: This is how fortunes are made, not through FOMO. Slow down and don't rush. This stuff moves very slowly for the long term trader, If you do it right you'll stress less than your day trader counterparts, you'll also make more and keep more. Lastly, try to learn about charting during boring markets, you can join groups and buy signals but there's no one better than you to rely on.
DON'T FORGET TO FOLLOW ME - STOP LOSING MONEY AND START MAKING PROFITS.
NOW, THE LEGEND; Support trendlines are green Resistance trendlines are Red Horizontal support lines are white, the thicker the stronger the support 50 Moving Average is yellow 200 Moving Average is white
THE TREND: Going Down, we have not made a new higher high THE OUTLOOK: Expected to go down, unexpected if it goes up.
As always brilliant analysis, so much appreciated. So, just to confirm: if we go over the resistance red line BEFORE the drop down towards the green line support, we can assume the movement down to the green line is cancelled and we are in the middle of a parabolic move up? How far above that resistance line would you jump in? And what would be looking for to indicate that we are above and staying above the line? Would you set an OCO in this instance?
@investicli, you asked what I wanted to know but was struggling to put together, thanks
Behzadin
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Don't think will see those lows again. (Just factoring the mining cost) As for TA this is my take.
cryptoGats
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@Behzadin, you are right, mining is yet another factor in this asset class but as always the best move is to wait and see. Thanks for bringing this to our attention.
Gold_Rush
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I called this back in may and you hope we bounce here I don't think we will. I think the bear market continues...
Thanks @cryptoGats! Question for you though. I have buys set at each of the targets for now, but do you think it's best to wait until the downward action actually happens to see if things go lower?
cryptoGats
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@sojournersoul, not a bad idea to have automatic buy orders. It avoids you changing your mind at the last minute, we tend to sabotage ourselves like that. As another strategy I would put them just a little below but not too much. Also, sometimes a large wick can reach down in a flash and if you have a B/O it will hit and that’s always a good feeling.