Many people are still asking themselves why they can't "read" Bitcoin. Only very few can and do well with it. This is just about 2% :p .
My big advice to you all is : stick with the basics and keep it SS (simple & short).
First some advice :
- Lower timeframes don't give you a clear picture of the market ( just a little bit more patience needed but as you all know... patience rewards!).
If you really wanna have a clear vieuw of mr. market, just use bigger timeframes like the 3-daily, the weekly and the monthly charts.
- Make a well calculated ( depending on age , the younger the more risk any can take) spread of your money! Don't invest all at ounce , certainly not in
1 asset or company.
- Dollar cost averaging is a proven strategy during decennia. As well for buying as selling! It worked and still works fine for me and will also work fine for you ;)! This takes a little bit more time then buying all at ounce but is hardly recommended so again.... : patience!
- Just an easy combination of a few simple indicators like the relative strength index (RSI) , Moving Average Convergence Divergence indicator (MACD) , Stochastic RSI and the Fibonacci Retracement Levels (with "golden pocket") can get you a lot further. If you don't know and understand these you are
certainly not ready to trade Mr. Crypto market and you should first start learning these ( again patience ;) )!
- Never invest without the proper research about the company , project, blockchain,defi ..., whatever...
You should always feel comfortable with your investments because otherwise you won't sleep! Therefore it is highly important to know as much as
possible or anything about it! Knowledge gives you a better mood and feeling during investing. ( again patience )
- Go against the "ANT" psychology and don't panic when you shouldnt panic! (example : when usecases and intrinsic value are growing you shouldn't
panic when prices drop because of other macro "manipulations". Prices of Mr. market adjust themselves when time flies by. (patience , patience,
patience!!! I can't say it enough) :p
- And offcourse last but not least: - Never listen to others! Handle at own intrest!
- Never invest money that you can't afford to lose!
- Take care of your family!;)
Now that you know this its time for som analysis and my personal expectations.
Multi year resistence line
As we all know Bitcoin and many others broke their +2 year "key "resistence lines around the end of august.
We all can clearly see that there was yet no backtesting it as a support. ( Big chance this will take place )
Macd indicator
For the Macd - indicator we can clearly see that it is losing strength and ready to visit its read zone.
RSI indicator
The rsi is around 53.7 so still in a possitive "wind" but also losing a bit of strength.
Fibonacci levels
For last piece of bullrun we climbed all the way from 4k low to a 12+k high. Drawing these fib levels shows us a golden pocket / zone
roughly between 7500$ and 7900$.
"Gap"
The gap under the 10k levels is still there ( not a 100% certain but you all know that they usually intend to get filled pretty quick)
Conclusion: Bitcoin has a big chance of backtesting its previous multi-year resistence line as a support. This is needed to get a clear and real confirmation of the bull run for me. Wicks to the downside will be there for shure to scare most off without proper "balls. I can see a clear picture in front of me with a wich to the golden zone just under the 8k levels. Expect this to be a sharp and short one with a very fast recovery! Because of the covid and the economic circumstance things can look very ugly during next 2 months but when fundamentals are good, your investment will be good! As I said before , prices adjust themselves next to the fundamentals, So hodl and buy every dip that is bigger then 20% !;)
Thank you for reading and if you have any opinions, please shoot! :)
Friendly Regards,
Nick
