The 1D MA50/ MA200 Cross (Golden Cross) is about to take place and you are still wondering how to trade it?
Well the last time that happened in July 2015 following the previous bear cycle's bottom, Bitcoin pulled back by around -35%. Then the price rebounded towards a Death Cross (1D MA200/ MA50) that made it consolidate before a new (and final) Golden Cross that pushed BTC to new highs.
The Distance between the 1st Golden Cross and the Death Cross was around 62 days and the (D) between the Death Cross and the 2nd Golden Cross 42 days.
I have tried to plot the same pattern into today's chart. The conclusion is yours!
*Bonus the Ichimoku Cloud which plots a path ahead of the Crosses!
It's a mistake many traders do. They think they can compare Bitcoin from 2015 or even 2016 with now. It is THE biggest mistake you can do. Bitcoin has evolved and way more exchanges, smart money and whales are in the market now, why these comparison charts usually not are trustworthy.
@D4rkEnergY, it is mistake many traders do. They believe btc has evolved and somehow things have changed completely. Nope. The similarities are staggering and so far the patterns from the past have been followed, and will continued to be followed because they reflect sentiment and human psychology which drives the market. It is amazing to see that so many geniuses on tv cannot see it, they must be blind.
TradingShot
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@D4rkEnergY, I respect you Darkie but how come you making such loud statements that every one is wrong when the previous cycles have been a great guide of where and when to buy and sell? We are very fortunate that BTC repeats the same cycles over and over again. Take advantage of that and profit.
D4rkEnergY
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@TradingShot, Cycles tend to repeat it self. Because of that, and because the market is a reflection of peoples feeling, we are able to figure out which scenarios that are most likely, and therefore also profit from it.
THOUGH. And this is important. Because Bitcoin is such a new Market, it hasn't yet matured why you cannot compare a BTC in 2015 with one in 2019, because there are completely different players now in this market.
It's like comparing a 3 year old child and look at his behavior, and think you can compare him when he is 10. When Bitcoin grows up and becomes 18 there are a bigger chance, that you can recognize patterns and behaviors with Bitcoin as 25 years old.
kardia
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I'm not ruling out the possibility Bitcoin could go down, but you bears who are looking for a major drop might be disappointed. And worse, if you don't get the drop you are looking for you may end up buying in at much higher prices or be left behind wishing you didn't wait. Don't be greedy. Greed loses in the end.
TradingShot
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@kardia, I am not bearish on Bitcoin. I am as bullish as anyone I can think of. I am only making arguments about the potential price action before the next bull run. In my analysis I never said "sell". I am only pointing out where BTC investors can add more as we prepare for our way up.
Anoinvest
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I fully aggre with your chart and it confirm my bias. Thanks for sharing and here is my view Im calling Bitcoin at 100K in 2021
TradingShot
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@anosinvest, I love that little icon at the end of the channel! You should hit a trademark on it! Joking aside thanks for sharing.