My prior posts on BTC presented the concept that if BTC bounced-off the lower cost basis line (illustrated was the swing trader and short term traders costs basis), we would want to be long and take advantage of the accumulation driven by 1) Hodlers not selling and 2) new capital coming into the market (with lower break even points.)
The middle cost basis line (refer to related articles/links), I said to be long when support was found with the first price target being the upper costs basis line. The second trade or add-to trade, would be when the upper cost basis line was breached and support was found on a re-test - we are now at that point.
Out next price target are the prior highs. This is a reflexive process where new capital is drawn in as price escalates which attracts even more capital and a higher rate of 'hold'ing'' that is : "trade when the market is behind you!"
On the other hand - the cost basis lines provides solid areas for average breakeven points in the market and where you stop losses can be set - at least mentally. This is important as crypto is an expectations game - this no fundamental value to provide arbitrage boundaries per se - so this is a very good way of understanding pure speculation and its application to BTC and other cryptos.
#BTC #CostBasis #AdamCox #Trading #Crypto
The middle cost basis line (refer to related articles/links), I said to be long when support was found with the first price target being the upper costs basis line. The second trade or add-to trade, would be when the upper cost basis line was breached and support was found on a re-test - we are now at that point.
Out next price target are the prior highs. This is a reflexive process where new capital is drawn in as price escalates which attracts even more capital and a higher rate of 'hold'ing'' that is : "trade when the market is behind you!"
On the other hand - the cost basis lines provides solid areas for average breakeven points in the market and where you stop losses can be set - at least mentally. This is important as crypto is an expectations game - this no fundamental value to provide arbitrage boundaries per se - so this is a very good way of understanding pure speculation and its application to BTC and other cryptos.
#BTC #CostBasis #AdamCox #Trading #Crypto
