raamraj

Do Nothing at This Level

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
After 48hrs, I was expecting the volatility to return to the upside, but the bears showed their mischief again. We anticipated this action could play out and have a clear action plan to handle such event So the latest move should not be any surprise to the bulls, just allow the bears to take the stage right now. No reason to fight or get perturbed by this.

My plan was to deploy some cash to buy or dollar cost average below $26-28k level. So, right now, no action is taken. It would not be in the interest of the bulls to add more on this dip. This will be risky as more downside is likely to happen.

We just watch which way the price would move in next couple of days. If we get a sudden plunge to $28 level and below, then I would be be extremely cautious for more selling to continue throughout the next month or so. This scenario will not be at all encouraging for HODLers as we can expect a prolonged winter of low selling pressure. I will also keep note of price to test below 20k too and have cash in hand to seize that opportunity.

If the price stopped declining or level off for next 4-5 days, I would initiate my dollar cost average at current level.

On the other hand, if we see a sudden uptick and the 31,500 resistance level is penetrated, my next buy will be above that level. This is a plan I believe will be a winning strategy to come out top at the end of sell-off season.