Hi guys, wanted to do a simple analysis on BTC. It appears the dreaded death cross has happened, not like we didn't expect this of course. The good news is that this may be quite favorable for us.
Have a look at the death cross that occurred in 2015:
Upon crossing down, there was virtually no downside, and only a mild fluctuation of about 9% in price. More interesting to note is that we saw fantastic upside follow. The period between cross under and over was 59 days.
Fast forward to present day, and we have officially crossed down. If we were to replicate the previous death cross, we should begin to cross up around 5/31-6/1.
Using the previous death cross as a reference, it is with this that I caution you about up and selling your whole position. It appeared that the death cross was quite a favorable occurrence, with little to no downside. We could possibly see a retracement in the future (around 6500), but there is a strong possible of upside in the coming days. As I write this, we are trying our damnest to fight a sideways support level that was established back from 7/16/18. We broke it a few days ago, but it seems we have bounced back, possibly signaling a reversal to the upside. If we fail to hold above this support, I suggest opening a short and rebuying at the lower support of 6500. If we fail to hold that, consider opening another short and repositioning yourself at 6000.
Be sure to set a stop loss at each level, so that you minimize your downside as much as humanly possible.
The biggest advice I can give at this moment is to not have any attachment to any particular coin. Even if you may be holding a smaller position than you previously were, I would recommend staying liquid/tethered and participate in nothing more than some swing trading opportunities, as we're currently in limbo. Until we break out of this sideways resistance (green line), I wouldn't suggest holding a long term position.
I know it's tough to watch your coin count dwindle, but if you have the nerves to handle readjusting your position, you'll often be rewarded with an even larger position. Make your moves logically, assess your risk, and protect your assets. We're almost through this shit storm, fam.
Have a look at the death cross that occurred in 2015:
Upon crossing down, there was virtually no downside, and only a mild fluctuation of about 9% in price. More interesting to note is that we saw fantastic upside follow. The period between cross under and over was 59 days.
Fast forward to present day, and we have officially crossed down. If we were to replicate the previous death cross, we should begin to cross up around 5/31-6/1.
Using the previous death cross as a reference, it is with this that I caution you about up and selling your whole position. It appeared that the death cross was quite a favorable occurrence, with little to no downside. We could possibly see a retracement in the future (around 6500), but there is a strong possible of upside in the coming days. As I write this, we are trying our damnest to fight a sideways support level that was established back from 7/16/18. We broke it a few days ago, but it seems we have bounced back, possibly signaling a reversal to the upside. If we fail to hold above this support, I suggest opening a short and rebuying at the lower support of 6500. If we fail to hold that, consider opening another short and repositioning yourself at 6000.
Be sure to set a stop loss at each level, so that you minimize your downside as much as humanly possible.
The biggest advice I can give at this moment is to not have any attachment to any particular coin. Even if you may be holding a smaller position than you previously were, I would recommend staying liquid/tethered and participate in nothing more than some swing trading opportunities, as we're currently in limbo. Until we break out of this sideways resistance (green line), I wouldn't suggest holding a long term position.
I know it's tough to watch your coin count dwindle, but if you have the nerves to handle readjusting your position, you'll often be rewarded with an even larger position. Make your moves logically, assess your risk, and protect your assets. We're almost through this shit storm, fam.
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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.