Bitcoin is currently undergoing a long awaited correction.
There are many bearish signs, one of the most reliable patters being the head and shoulders.
I have been waiting to enter long Bitcoin at a good price since I did not enter the initial bullish move as I was waiting for a healthy correction like this. One of my trading rules is to never chase the price, so I had to watch the price go parabolic.
The good thing is that markets tend to give you a chance to get in, especially with an emerging volatile market like Bitcoin. Don't think for a second just because it can go up so strongly, that it's not the same on the opposite side.
The Reason for the Trade:
This is a long term FUNDAMENTAL play utilizing TA for entry and exits. Digital currency is here to stay, the world is shifting to digital. Weather it's bitcoin or some other type of crypto-currency the long term outlook is bullish on digital currency.
The global currency market trades approximately 5 to 6 TRILLION dollars per day. This shows how much money is flowing in and out of currencies.
When you introduce a concept of digital unified global currency with limited number of "shares" such as Bitcoin, where banks cannot control the inflation rates, there is a good chance that some of the Trillions of dollars from the FX markets will flow into the new currency - this is what we are currently observing.
Now that the concept of Bitcoin has been introduced to the people around the world, and they have heard its explosive potential to earn easy money it is easy to conclude that there is big potential for a BUBBLE as people from all over the world enter the BTC market.
I want to ride the Bitcoin Bubble, and this is my Entry point idea.
The Plan:
I will start buying when the price hits the buy zone scaling in starting at 10,000 all the way down to 8500. I WILL NOT SET A STOP - That's right.
If you want to follow me on this trade, use money that you can afford to lose. Bitcoin is so volatile that stops must be set so wide that it's almost not worth having them.
If price breaks the 4000, that's when I'll look to exit MANUALLY.
There are many bearish signs, one of the most reliable patters being the head and shoulders.
I have been waiting to enter long Bitcoin at a good price since I did not enter the initial bullish move as I was waiting for a healthy correction like this. One of my trading rules is to never chase the price, so I had to watch the price go parabolic.
The good thing is that markets tend to give you a chance to get in, especially with an emerging volatile market like Bitcoin. Don't think for a second just because it can go up so strongly, that it's not the same on the opposite side.
The Reason for the Trade:
This is a long term FUNDAMENTAL play utilizing TA for entry and exits. Digital currency is here to stay, the world is shifting to digital. Weather it's bitcoin or some other type of crypto-currency the long term outlook is bullish on digital currency.
The global currency market trades approximately 5 to 6 TRILLION dollars per day. This shows how much money is flowing in and out of currencies.
When you introduce a concept of digital unified global currency with limited number of "shares" such as Bitcoin, where banks cannot control the inflation rates, there is a good chance that some of the Trillions of dollars from the FX markets will flow into the new currency - this is what we are currently observing.
Now that the concept of Bitcoin has been introduced to the people around the world, and they have heard its explosive potential to earn easy money it is easy to conclude that there is big potential for a BUBBLE as people from all over the world enter the BTC market.
I want to ride the Bitcoin Bubble, and this is my Entry point idea.
The Plan:
I will start buying when the price hits the buy zone scaling in starting at 10,000 all the way down to 8500. I WILL NOT SET A STOP - That's right.
If you want to follow me on this trade, use money that you can afford to lose. Bitcoin is so volatile that stops must be set so wide that it's almost not worth having them.
If price breaks the 4000, that's when I'll look to exit MANUALLY.
Comment:
Look for the wedge to break down. If the price Breaks the Upper wedge and the right shoulder resistance, the trade is invalid and we will likely have to buy at a higher price.
Comment:
For those who are wondering where the Blue bottom trending is coming from.
Comment:
The price action looks good, we are rejecting the price from coming back into the wedge.
Comment:
The structure has been broken. If you want to Long bitcoin, now is a good time.
It does not look like we are going below 12,000
It does not look like we are going below 12,000