"Short now, and buy in at 5,600."
Is what I would recommend if I were more confident in my analysis.
I just want this post to point out a few things.
So why does this matter? The answer is entirely speculation. My current understanding of bitcoin is that multiplying by 10 to the price doesn't change what makes bitcoin special, the technology speaks for itself. Money should not be easy to create hence the surmounting difficulty of minting and mining bitcoin (as well as various other mineable alts). This also being attributed to the bi-yearly reward halving (ie 2018 bubble & 2020https://www.bitcoinblockhalf.com/).
Here is where things get a little more esoteric. If a short bull run in 2016 corrects to 560, then who's to say we won't see a bottom of 5,600. What is so special about $5,600 and $560?
Psychology my dear Watson.
I remember a friend of mine saying, "Do you know how long I was waiting for 5k bitcoin?" It was a huge price point for him as well as many strong-handed investors. What we are all waiting for is "capitulation," where bears and bulls cannot decide on which way to go. For bitcoin however, it's obvious the answer will be to go up.
Is what I would recommend if I were more confident in my analysis.
I just want this post to point out a few things.
- Bitcoin hasn't reached a long-term RSI around 44 in quite some time.
- Bitcoin RSI was only this low in 2016 Q3-4. The prices was roughly $560.
So why does this matter? The answer is entirely speculation. My current understanding of bitcoin is that multiplying by 10 to the price doesn't change what makes bitcoin special, the technology speaks for itself. Money should not be easy to create hence the surmounting difficulty of minting and mining bitcoin (as well as various other mineable alts). This also being attributed to the bi-yearly reward halving (ie 2018 bubble & 2020https://www.bitcoinblockhalf.com/).
Here is where things get a little more esoteric. If a short bull run in 2016 corrects to 560, then who's to say we won't see a bottom of 5,600. What is so special about $5,600 and $560?
Psychology my dear Watson.
I remember a friend of mine saying, "Do you know how long I was waiting for 5k bitcoin?" It was a huge price point for him as well as many strong-handed investors. What we are all waiting for is "capitulation," where bears and bulls cannot decide on which way to go. For bitcoin however, it's obvious the answer will be to go up.
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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.
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.