MellenIO
Long

BTCUSD - history repeating itself?

BITFINEX:BTCUSD   Bitcoin / Dollar
Historically, when trading Bitcoin             , I have noticed two things:

-A large dropoff in price is met with huge rallies
-Large pumps typically that end up dropping off tend to trade after the first "hurdle" (think of point 2 in the 5 wave Elliot cycle)

Right now, we are in a pivotal moment for Bitcoin             where one of two things will happen:
-We hit our support at ~$7,000 and bounce back, forming an inverse head & shoulders pattern
-We drop down to the point I mentioned before, at around ~$5,800, at which point we will see a (further off) huge pump in price

The last few times Bitcoin             has seen 30 or less RSI has been met with huge rallies - we're at this point now. If we don't see much major improvement in its price we will likely be at the $7,000 mark. Past that we'll rally or we'll drop to $5,800 mark.

Is it scary? Yes. Is it hard to look at? Yes. Will we recover, however? Yes. A lot of people talk about "start of the year cycles" with Bitcoin             , and I've highlighted a few instances of where this has happened and how it's likely we'll recover (albeit they're not always at the start of the year) - if you scroll around in this chart long enough you'll see some of them.

If we see a boost from $7,000, we'll see true resistance at the 0.618 fib level (~$15,000)

In short: yes, we dipped a lot. Yes, there's a lot of FUD. However, I believe this soon will be over and we'll be looking at much better yields. I'm holding all my haul through this mess despite buying at up to $15,000 and believe we'll hit these targets.

Buy targets: ~$7,000 - if we drop below $6,500 or so it might be a good idea to look at entering more below $6,000 too.

Remember to buy in chunks and trade safe.