Bitcoin re-accumulation zone
7 Essential principles we have learnt this year from trading weekly charts:
-Weekly charts are where the real $ is.
-If you are looking at weekly charts, don't get caught up in the short term volatility. Unless trading the 1D and 4H charts, of course.
-Identifying the accumulation or re-accumulation zone early is essential.
-Don't expect the price to start moving as soon as you buy or sell. A single trade on a weekly chart can last up to 16 weeks.
-Accumulation zones on a weekly chart can go from 10 to 16 weeks, sometimes more. Market sentiment is usually bearish during this time.
-Accumulation zones are where the institutions buy the lower part of the zone, while retail sells their positions following bearish news.
-Retail jumps on board once the price has left the accumulation zone. Don't follow market sentiment!
That being said, I believe we are currently at the early stage of a re-accumulation zone that will last several weeks. Maybe another 7 to 10.
Guessing when the price will leave the zone would be as naive as trying to guess how deep the dip will be. That's why I always show a box with the "zone".
So, start accumulating without expecting to be the last buyer before a rally.
I re-accumulated BTC at $33.500 in July while the market sentiment was extremely bearish. I wasn't the last buyer, because prices went down to almost $28.000 few weeks after. I closed those positions at $65.000 and again, I wasn't the last seller. Expecting to be that person is imposible and will affect your judgment.
My best advice is, start accumulating and be patient. When trading the weekly, use the daily timeframe ONLY to try and find the best buying zones but don't get caught up in the short term volatility.
I'll be posting the daily projections as per usual. Here's the link to the previous one, which is right on track with the forecast:
We might or might not visit the 42k zone. The question is: If you buy BTC at 46 -current price- and you sell around 70. Would you care if you bought it at 42 or 46? Maybe!
Ask those bears who were waiting for the $20.000 in July just because that was "The best buying zone" what they think now.
Happy 2022!
Rio.
-Weekly charts are where the real $ is.
-If you are looking at weekly charts, don't get caught up in the short term volatility. Unless trading the 1D and 4H charts, of course.
-Identifying the accumulation or re-accumulation zone early is essential.
-Don't expect the price to start moving as soon as you buy or sell. A single trade on a weekly chart can last up to 16 weeks.
-Accumulation zones on a weekly chart can go from 10 to 16 weeks, sometimes more. Market sentiment is usually bearish during this time.
-Accumulation zones are where the institutions buy the lower part of the zone, while retail sells their positions following bearish news.
-Retail jumps on board once the price has left the accumulation zone. Don't follow market sentiment!
That being said, I believe we are currently at the early stage of a re-accumulation zone that will last several weeks. Maybe another 7 to 10.
Guessing when the price will leave the zone would be as naive as trying to guess how deep the dip will be. That's why I always show a box with the "zone".
So, start accumulating without expecting to be the last buyer before a rally.
I re-accumulated BTC at $33.500 in July while the market sentiment was extremely bearish. I wasn't the last buyer, because prices went down to almost $28.000 few weeks after. I closed those positions at $65.000 and again, I wasn't the last seller. Expecting to be that person is imposible and will affect your judgment.
My best advice is, start accumulating and be patient. When trading the weekly, use the daily timeframe ONLY to try and find the best buying zones but don't get caught up in the short term volatility.
I'll be posting the daily projections as per usual. Here's the link to the previous one, which is right on track with the forecast:
We might or might not visit the 42k zone. The question is: If you buy BTC at 46 -current price- and you sell around 70. Would you care if you bought it at 42 or 46? Maybe!
Ask those bears who were waiting for the $20.000 in July just because that was "The best buying zone" what they think now.
Happy 2022!
Rio.
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