Would You BUY BTC with a Chart Like This?
Would you be buying BTC if its chart looked like this since November 2021? This is a weekly chart of Bitcoin ( BITSTAMP:BTCUSD COINBASE:BTCUSD CME:BTC1! ).
The chart has been inverted. This is why it looks so bullish . Buying BTC right now is like shorting it based on this bullish-looking chart (ignoring the numbers in the side bar, which are inverted as well).
If you would buy this chart—ignoring the inverted numbers in the side bar and assuming the price is climbing—then you should probably be selling the actual BTC chart until it changes. This is the power of charts and price action—they tell us the truth if we're willing to listen and overcome our emotions and all the mental chatter.
This inverted weekly chart with powerfully upward sloped EMAs would be one where buyers would be piling into the trade buying dips, and even buying the swing highs—cause in this trade, it would work out so that no one could get it wrong. If someone bought too high, just wait a few weeks, and the trade would transform to being "right."
Many may be wondering when to buy. There are lots of hours of fundamental research that could be done. So far, all the fundamental reasons to buy have lead to losses. It's been like catching a falling knife over and over. Even if someone had waited patiently until early June 2022 to buy BTC , they still would have suffered almost -50% losses over the next few weeks.
If you catch a falling knife enough times, without stops, when the chart changes, it becomes impossible to trade with size and conviction when a real reversal starts materializing.
For position-traders and longer-term trend investors, an alternative to catching a falling knife is to buy when the chart starts transforming to look like this inverted one.
I enjoy looking at inverted charts. They help remove the inherent biases one might have about the price of a given asset, security or instrument. I've inverted charts on TOS platform (common in the US), but not on TV. I hadn't realized TV could invert the chart easily.
BITO
BTCUSD
BTCUSD
BTCPERPBTCUSD
The chart has been inverted. This is why it looks so bullish . Buying BTC right now is like shorting it based on this bullish-looking chart (ignoring the numbers in the side bar, which are inverted as well).
If you would buy this chart—ignoring the inverted numbers in the side bar and assuming the price is climbing—then you should probably be selling the actual BTC chart until it changes. This is the power of charts and price action—they tell us the truth if we're willing to listen and overcome our emotions and all the mental chatter.
This inverted weekly chart with powerfully upward sloped EMAs would be one where buyers would be piling into the trade buying dips, and even buying the swing highs—cause in this trade, it would work out so that no one could get it wrong. If someone bought too high, just wait a few weeks, and the trade would transform to being "right."
Many may be wondering when to buy. There are lots of hours of fundamental research that could be done. So far, all the fundamental reasons to buy have lead to losses. It's been like catching a falling knife over and over. Even if someone had waited patiently until early June 2022 to buy BTC , they still would have suffered almost -50% losses over the next few weeks.
If you catch a falling knife enough times, without stops, when the chart changes, it becomes impossible to trade with size and conviction when a real reversal starts materializing.
For position-traders and longer-term trend investors, an alternative to catching a falling knife is to buy when the chart starts transforming to look like this inverted one.
I enjoy looking at inverted charts. They help remove the inherent biases one might have about the price of a given asset, security or instrument. I've inverted charts on TOS platform (common in the US), but not on TV. I hadn't realized TV could invert the chart easily.
BITOBTCUSDBTCUSDBTCPERPBTCUSD
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