I am an experienced trader, however I am newer to trading cryptos. One thing that happens in a strong trend is that you will see cycles of pull back.
Looking at the pullback that happened in January of this year I see that this current pullback looks very similar especially visually. From Jan 8th to Jan 22 price dropped from a high of $42000 to a low of $28800 for 31.43% loss. This took place over 19 days.
This would mean that if we saw a similar % drop from the recent top of $58,354 price would likely come down to ~40k. There is a solid support and resist line that is around 42k.
I hear many people saying that March is expected to be a turbulent month, albeit I can't claim to understand this entirely. Anyone care to elaborate in comments, please do so.
My strategy is to add to my positions at each of the support/resist lines that I have drawn in purple. If price follows historical data then price might come back up near the top again before the final push down to ~42k.
I am definitely bag holding some positions from the recent tops. I actually have a few 2x and 3x Margin positions as well. The roll over fees are much less than realizing the losses at this time and with my analysis I am hoping for a bounce up close to 61.8 or 78.6 of the fill leg down before I close them out. I have had some lessons here for sure chasing the breakouts. That said, looking at price action on the higher charts I still see a strong upward trend and no reason to believe we are looking at a reversal.
This is all my own analysis. This is not financial advice. Please like if you enjoyed this analysis.
Looking at the pullback that happened in January of this year I see that this current pullback looks very similar especially visually. From Jan 8th to Jan 22 price dropped from a high of $42000 to a low of $28800 for 31.43% loss. This took place over 19 days.
This would mean that if we saw a similar % drop from the recent top of $58,354 price would likely come down to ~40k. There is a solid support and resist line that is around 42k.
I hear many people saying that March is expected to be a turbulent month, albeit I can't claim to understand this entirely. Anyone care to elaborate in comments, please do so.
My strategy is to add to my positions at each of the support/resist lines that I have drawn in purple. If price follows historical data then price might come back up near the top again before the final push down to ~42k.
I am definitely bag holding some positions from the recent tops. I actually have a few 2x and 3x Margin positions as well. The roll over fees are much less than realizing the losses at this time and with my analysis I am hoping for a bounce up close to 61.8 or 78.6 of the fill leg down before I close them out. I have had some lessons here for sure chasing the breakouts. That said, looking at price action on the higher charts I still see a strong upward trend and no reason to believe we are looking at a reversal.
This is all my own analysis. This is not financial advice. Please like if you enjoyed this analysis.
Comment:
Looking today and price is still moving exactly like it did in January. Very few differences. A strong Bear Butterfly is forming just like it did in January as well.