Hi everyone! First of all have a happy new year - stay healthy and well :-)
When analyzing BTCUSD I have noticed a resemblance between what is happening right now (months of Dec2020 and Jan2021) and December2017/January2018. BTC made similar gains, as it did in that year of 2017/2018, recovering from a previous low back to the ATH (approx. 60%), before rallying to 20000USD (140%), followed by a long phase of distribution and panick selling. This time BTCUSD recovered back to the ATH of 20000 (approx. 60%) and then reached new highs of 42000 (approx. 107%).
Back in 2017/2018 the bull run held for about four weeks - we are also now in week four. What COULD follow is a strong phase of distribution (profit taking), followed by people panicking.
Yes, now "it's different" I hear many people saying and truth is, it could be. But also keep in mind that back then, when BTC reached 20000 USD, many claimed it will go even higher and higher. People took their savings and even some took loans and put it into BTC as they saw it plummeting and then sold out of desperation.
What I am saying: Please be very careful with trading BTC. Those who claim that it will go to 200.000 by the end of the year, are those who are holding BTC and want to catalyze.
A major difference that we can observe with this phase is that we have some big companies involved (Grayscale, Microstrategy etc.) holding millions of USD in BTC.
Many see this as positive sign for the BTC prive development, but there is also a major risk: With Grayscale holding 3% of the circulating BTC we have a whale that can dump a huge amount at any time for profit taking and then rebuy at a cheaper level when individuals panick sell.
In conclusion: Watch the price carefully, it's better to use dollar-cost-averaging, since the bull run MIGHT be over (possibility, but not 100& outcome). Use stop-loss and do your own research.
I am no financial advisor and this is no financial advice!
Many thanks to c0tt0nc4ndyTA and Wyckoffmode - so far I have learned a lot from the both of you and still learning!
When analyzing BTCUSD I have noticed a resemblance between what is happening right now (months of Dec2020 and Jan2021) and December2017/January2018. BTC made similar gains, as it did in that year of 2017/2018, recovering from a previous low back to the ATH (approx. 60%), before rallying to 20000USD (140%), followed by a long phase of distribution and panick selling. This time BTCUSD recovered back to the ATH of 20000 (approx. 60%) and then reached new highs of 42000 (approx. 107%).
Back in 2017/2018 the bull run held for about four weeks - we are also now in week four. What COULD follow is a strong phase of distribution (profit taking), followed by people panicking.
Yes, now "it's different" I hear many people saying and truth is, it could be. But also keep in mind that back then, when BTC reached 20000 USD, many claimed it will go even higher and higher. People took their savings and even some took loans and put it into BTC as they saw it plummeting and then sold out of desperation.
What I am saying: Please be very careful with trading BTC. Those who claim that it will go to 200.000 by the end of the year, are those who are holding BTC and want to catalyze.
A major difference that we can observe with this phase is that we have some big companies involved (Grayscale, Microstrategy etc.) holding millions of USD in BTC.
Many see this as positive sign for the BTC prive development, but there is also a major risk: With Grayscale holding 3% of the circulating BTC we have a whale that can dump a huge amount at any time for profit taking and then rebuy at a cheaper level when individuals panick sell.
In conclusion: Watch the price carefully, it's better to use dollar-cost-averaging, since the bull run MIGHT be over (possibility, but not 100& outcome). Use stop-loss and do your own research.
I am no financial advisor and this is no financial advice!
Many thanks to c0tt0nc4ndyTA and Wyckoffmode - so far I have learned a lot from the both of you and still learning!