Looking to buy into Bitcoin?
Bitcoin has broke into a new all time high today as of right now the top is at $67000.
Break of all time high is a superb bullish sign, however I am bit pessimistic about the short future.
You hear it everywhere, Bitcoin has broke into new all time high, everyone is superb bullish, even my friends which never touched or looked at crypto told me about it.. something is just not right. It's funny how one can get blinded by green candles. (including me :-))
90% of people will look at what happened when Bitcoin broke previous all time high at $20000, a rally to $42000 has followed before a real correction. (That's over a 60% increase in 20 days)
The thing is, Bitcoin has been rallying from $40,000 into current $66,000 area without either a correction or at least sideways movement.
The daily signals with weekly are really bullish, so how can one buy Bitcoin when it's at such overbought extreme?
As you may know, I like to use 50 daily EMA as proper retracement level as Bitcoin very often visit this level in the end of a correction, that's where I will look to buy at.
50 daily EMA is currently located at $51600, so am I looking to rebuy at $51600..?
Well I would like to but as time goes by the 50 daily EMA also grows so I will look to buy back once Bitcoin hits the bespoke 50 EMA.
Why do I think a correction is coming?
I am mostly base my prediction on the fact that Bitcoin is really overbought and especially on MACD, which suggests a continued bearish divergence as the buying volume continues to fall, however the price continues to increase.
Another thing, a more important one, is the fact how high both EMA levels are, they are currently in all time high levels and from history, MACD being in this territory led to a stronger 25-30% correction which led the price to visit 50 EMA.
To me personally it seems like Bitcoin is currently on the apex of the current short term rally.
And of course if you are looking to buy into BTC, the best strategy is to dollar cost average, but here I am looking at Bitcoin from a swing trade perspective or making a bigger buy than usual!
PS:
Not a financial advice :-)
Break of all time high is a superb bullish sign, however I am bit pessimistic about the short future.
You hear it everywhere, Bitcoin has broke into new all time high, everyone is superb bullish, even my friends which never touched or looked at crypto told me about it.. something is just not right. It's funny how one can get blinded by green candles. (including me :-))
90% of people will look at what happened when Bitcoin broke previous all time high at $20000, a rally to $42000 has followed before a real correction. (That's over a 60% increase in 20 days)
The thing is, Bitcoin has been rallying from $40,000 into current $66,000 area without either a correction or at least sideways movement.
The daily signals with weekly are really bullish, so how can one buy Bitcoin when it's at such overbought extreme?
As you may know, I like to use 50 daily EMA as proper retracement level as Bitcoin very often visit this level in the end of a correction, that's where I will look to buy at.
50 daily EMA is currently located at $51600, so am I looking to rebuy at $51600..?
Well I would like to but as time goes by the 50 daily EMA also grows so I will look to buy back once Bitcoin hits the bespoke 50 EMA.
Why do I think a correction is coming?
I am mostly base my prediction on the fact that Bitcoin is really overbought and especially on MACD, which suggests a continued bearish divergence as the buying volume continues to fall, however the price continues to increase.
Another thing, a more important one, is the fact how high both EMA levels are, they are currently in all time high levels and from history, MACD being in this territory led to a stronger 25-30% correction which led the price to visit 50 EMA.
To me personally it seems like Bitcoin is currently on the apex of the current short term rally.
And of course if you are looking to buy into BTC, the best strategy is to dollar cost average, but here I am looking at Bitcoin from a swing trade perspective or making a bigger buy than usual!
PS:
Not a financial advice :-)
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.