In fact, it was crossing the 200 which led me to buy BTC back when it was in the $300-$400 range and HODL.
And here we are today, about to close below the 200. So do we sell?, Take Profit and Wait for it to close above again, securing a hell of a run?
I pondered this question for the last week. The answer is no.
We’ve come a long way since I learned this technique. And to be honest, that 200 can be a real whipsaw for buy and sell signals, as well as strong support in this case/chart.
So where do we stand?
(Not Shown) places us at the end of Wave 5 in this correction. We are currently in the bounce zone of 6000-7000, and possibly as low as 5000. As I was writing this I was looking at the daily and we were firmly in the 6500-6700 range. Between the time I looked at the chart and began to write, we jumped on heavy to 7200.
has picked up as those that bought high are now vomiting on their shoes after buying at the peak and are scared of the dip, while those with some handy cash are picking up cheap coins.
On the chart above you can see three things that stand out, the price dipping below the 200, the price clearly in the low red zone of the fibs showing we are very oversold, and that darn 50 day moving average slanting down. Those that follow me KNOW I keep a firm eye on that 50.
and are also showing oversold conditions. I expect they will begin to angle up soon as well as we move higher.
What we can expect from here:
The 50 began to concern me as it started to angle down a couple of weeks ago. The 50 is my major indicator for the longer term trend. It is the MEAN price, the average for what BTC should be in dollars. In , price always reverts to the Mean eventually, and prices can be measured as oversold and overbought accordingly. The angle shows you direction. Angling up is an uptrend, angling down is downtrend and also it can be flat. Never trade a flat 50....which is why I waited.
It is unfortunate, but we are now in a downtrend, albeit this is temporary. We are going to take advantage of a trade at this point. We are simply waiting to execute.
Since we are already bouncing or about to, we must calculate where the bounce will end so we can sell at a higher price, wait in cash or USDT and rebuy lower for more coins. It would have been great to catch the high at $20k, but things were moving so quickly, the execution was near impossible without a lot of slippage. Had I paid more attention to the extreme indicators, like a cook at the local greasy spoon telling me he had bought bitcoin , and a gambler I know who always loses telling me the same thing I would have taken that as a selling point for higher profits.
Kidding.....but actually true stories.
We do what we can do, and nothing in trading is an exact science. My goal is accumulate more coins either by trading or purchasing and then getting out at $100,000. I don’t need a lambo. I’d like a beach front property.
That being said, this trade is easy. See below for more info as Tradingview is only letting so many words for this post.
This os the opportunity of a lifetime.