Dollar cost averaging during the coming weeks has great risk-reward setups.
Takeaway for Traders:
The true bottom is closing up, and once we turn to the bull side, price will move quickly. Be ready when that break-out happens and execute with determination. (Eg. without proper mental preparation/discipline, it would be tough to catch 3k – 13k run.)
Can we drop again to 3k?
From this analysis alone, yes, we could. (And the transaction would likely rise higher in that case.)
Why is the long-term bottom closing if 3k is possible?
Fundamentally speaking, we’ve established a bottom already. Any further drop in price would likely be a speculative overreaction or whales manipulation attempting to accumulate at better prices. As long as the transaction is rising along with the price drop , bitcoin’s true value is holding and it is just a matter of time before we enter another bull cycle. If bitcoin truly becomes worthless, the transaction simply won’t hold.
“The bottom is mostly likely in, anything lower will be just a wick in the macro view.” – Willy Woo (12/7)
Different from the idea below, the transaction here used is measured in BTC not in $. This allows easier identification of bottoms. As a result, different bull cycles could appear in different scales given the fluctuation in BTC prices. Our point of interest here should be focused on when new bottoms establish, and when the momentum picks up from the bottom.