Bitcoin USD Buy-in/Re-buy Levels (End of Correctoin + Altcoins)Ok, so Bitcoin is correcting a lot, wait not Bitcoin, the entire cryptocurrency market is on a huge correction (people are selling an the price is going down). Billions of dollars are gone.
Is this good or bad?
What to do next?
When to buy back in?
What about the Altcoins?
Good or bad really depends if you have a plan and your level of understanding of how these markets work. Corrections are good, if you are looking at the long term health of an asset, coin or market. There are many players involved, many people bought Bitcoins and other cryptocurrencies without any knowledge of how this market works, the price goes high, everything shoots up, but the time to take out some profits finally comes. The experienced players are hungry they want their gains from the purchase of their coins.
There is also market manipulation, media manipulation and so much more. Our natural behavior as well, panic and other factors. But none of it is a big deal for those that are trading to make money, for us this is just a situation to watch from which we can benefit as well. Look for a re-entry price and how to maximize profits when the correction comes to an end.
So, is this good or bad?
Corrections are good. This type of correction happens after a phenomenal bull run, the Bitcoin price reached all time high, the market grew to new levels, it is safe to say we reached a top, now we want to know where is our bottom, we want to know this market more. So we retrace looking for support, until we find one... we are getting close.
The chart above shows my recommended buy-in (re-entry) levels for Bitcoin. At the same time, this same levels, if they hold, can be considered the end of the correction and activate a buy wave on all altcoins.
So watch for these levels, this might be where the correction comes to a halt. We have already been going down for a while now, so we just need one last push before we find our support.
What to do next?
If you follow my trades, we are taking the hold approach, but why? Because this is the easiest for beginners, not as in a personal way as you might think, but easiest in the sense of following a strategy where you can be sure to win no matter what happens. Knowing that this is a normal correction, you can act on it by making a plan before hand, buy and sell, trade like a boss. Buy and sell can cause mistakes, we like safe bets, that's why we hold.
When to buy back in?
Follow the chart and use my recommended "buy-in zone" square. If the price breaks this level and goes lower, then you buy-in more.
What about the Altcoins?
Our Altcoins are most in the red, just like the entire market. We have a few options here:
1) Sell and buy back lower (this requires keeping track of Bitcoins price and alts price).
2) Sell and remain out, take a loss and wait for new trades (not me).
3) Hold for the correction to be over, maybe reload at the bottom and your money will grow again (reload more while holding the old - I like it).
So it really depends on you.
My relaxation approach calls for a vacation rather than more trades (buying and selling alts), after the correction is over, many new and more opportunities awaits. We are here, and will still be here, to profit from these trades.
Namaste.
