Today at 8 pm EST we had the 2019 death cross. To better understand this event I will answer three questions: What does it mean? How will it affect the price of Bitcoin? What to expect?
WHAT DOES IT MEAN? When the price has been in such a fast decline it prompts the faster 50MA to cross the slow-moving 200MA. This also means that the asset -- which in this case is bitcoin -- has not been able to move above the 200MA for some time, and it has been too weak to recover thus prompting the 50MA to move down and create what is called a "Death Cross." It is called a death cross because traditionally nothing good happens after this event.
HOW WILL IT AFFECT PRICE? One word; NEGATIVELY. The price will range and try to rally up to the 50MA just to be rejected and sent down deeper and deeper until we find a healthy buy zone. The healthy buy zone could be in the 4k area -- which is not in play yet. So let's relax and watch this play out this cash in hand. I personally have only 25% of my working capital in, I have been advising you all to do the same. Let's not rush to buy the next green X (buy zone) just yet.
WHAT TO EXPECT? This can take a few months, the last death cross happened on March 31, 2018. The recovery was on April 25th, 2019. That's a long frigging time.
I would recommend not to put any money in as of right now until we have clarity. I will explain what clarity means and when to dive back in on the next few posts.
On a strong trend, you buy in at the 38.2% retracement and set a moderate stop loss. Check out my new post in s few hours, there are resistance points coming up where it is worth selling. One last major channel has to be broken. If we go over it $20,000 is in play and if we don't then we are coming down hard.
cryptoGats
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But heads up: we need to clear that redline below, if we do that we are back to an uptrend. But it is safe to jump in with a moderate SL.
cryptoGats
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This up move is enough to start looking for an entry point. Best strategy is to go to your local times (2H or 4H) draw a fibo and jump in when it retraces 38.2 percent. 38% is reserved for very strong trends which this one seems to be.
ashkanatashkar
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oppps
BigBuxTrading
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Oops....
cryptoGats
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@sdubyag, when the market direction changes time to look for another strategy.
ferGOD
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Nice work brother. I really liked your idea. Thanks for sharing. We go together.