BTC getting closer to test the monthly level
Remember my idea from April, 22nd 2021? If not - you can find it in my posts.
What has happened so far? BTC broke the 4hr level and crashed thru the weekly levels of 50307$ and 49505$ (also mentioned as a possibility in my previous analysis).
Now the price is approaching the monthly level at 45097$.
The actual question is: what will happen then?
Well obviously there are two options:
1. The price will experience a strong rejection and climb back up to the next weekly resistance around 49 or 50K.
2. The mass will panic and sell, which can set off a massive wave of supply and since demand is very low at the moment, BTC and the whole crypto market could drop into the next bear season.
You may think "Oh no this cannot happen, because there is now institutional interest and companies like Tesla, MicroStrategy and Grayscale are invested.
Think again: Usually those have already taken profit along the way up and now wait for a price drop, so that they can buy in cheap around 20K (or maybe even less) and repeat the cycle. Who loses money?...
So what could I do? If I had bought in around 60K or 50K, I could sit it out, wait for big drops (<30%) and average down my initial purchase price.
If I did not buy in, then I could buy a fraction (1/10 of my account size) and keep the rest to buy possible drops.
Be smart! Your biggest enemy is greed (also a sin ;)).
-This is no financial advice, so please trade with care-
For transparency reasons: I am still not invested in BTC. I am invested in PUNDIX with 1/10 of my account size and was able to reduce my initial purchase price thru dollar cost averaging (explained in another idea).
What has happened so far? BTC broke the 4hr level and crashed thru the weekly levels of 50307$ and 49505$ (also mentioned as a possibility in my previous analysis).
Now the price is approaching the monthly level at 45097$.
The actual question is: what will happen then?
Well obviously there are two options:
1. The price will experience a strong rejection and climb back up to the next weekly resistance around 49 or 50K.
2. The mass will panic and sell, which can set off a massive wave of supply and since demand is very low at the moment, BTC and the whole crypto market could drop into the next bear season.
You may think "Oh no this cannot happen, because there is now institutional interest and companies like Tesla, MicroStrategy and Grayscale are invested.
Think again: Usually those have already taken profit along the way up and now wait for a price drop, so that they can buy in cheap around 20K (or maybe even less) and repeat the cycle. Who loses money?...
So what could I do? If I had bought in around 60K or 50K, I could sit it out, wait for big drops (<30%) and average down my initial purchase price.
If I did not buy in, then I could buy a fraction (1/10 of my account size) and keep the rest to buy possible drops.
Be smart! Your biggest enemy is greed (also a sin ;)).
-This is no financial advice, so please trade with care-
For transparency reasons: I am still not invested in BTC. I am invested in PUNDIX with 1/10 of my account size and was able to reduce my initial purchase price thru dollar cost averaging (explained in another idea).
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