Observe how the broken red support acts as a key resistance for the price.
Is this the time to buy Bitcoin?
Well, it is tempting to do the opposite of the majority and go long at this point. But, that approach carries significant risk since the price could get rejected at this point which would produce a massive sell off. This is a crashed market and we haven't seen a capitulation phase yet.
So, how do we proceed?
Buying now provides a good entry point if the market is bullish. But, wouldn't it be wiser to wait for confirmation. After all, a discounted price means nothing if the price gets wrecked from this point.
Therefore, we could forfeit the discounted price and buy on confirmation once the price breaks above the red resistance and stays there.
Otherwise, let's patiently wait for a severely discounted price. Final buy target on the green support.
If the price reaches the green target, then it will have dipped far below the production cost to mine Bitcoin. Is that possible? Maybe. The price won't stay at the selling climax for very long. As a matter of fact, there should be an amazing automatic reaction in the form of a fat green candle.
Over the long term, I am very bullish on Bitcoin. But, big money controls this market and we must follow in that direction whether the price moves up or down.
My gut feeling tells me that the price will get rejected at the red resistance. But, you shouldn't trust my gut feeling. Always execute trades that fall within the range of your risk appetite.
Is this the time to buy Bitcoin?
Well, it is tempting to do the opposite of the majority and go long at this point. But, that approach carries significant risk since the price could get rejected at this point which would produce a massive sell off. This is a crashed market and we haven't seen a capitulation phase yet.
So, how do we proceed?
Buying now provides a good entry point if the market is bullish. But, wouldn't it be wiser to wait for confirmation. After all, a discounted price means nothing if the price gets wrecked from this point.
Therefore, we could forfeit the discounted price and buy on confirmation once the price breaks above the red resistance and stays there.
Otherwise, let's patiently wait for a severely discounted price. Final buy target on the green support.
If the price reaches the green target, then it will have dipped far below the production cost to mine Bitcoin. Is that possible? Maybe. The price won't stay at the selling climax for very long. As a matter of fact, there should be an amazing automatic reaction in the form of a fat green candle.
Over the long term, I am very bullish on Bitcoin. But, big money controls this market and we must follow in that direction whether the price moves up or down.
My gut feeling tells me that the price will get rejected at the red resistance. But, you shouldn't trust my gut feeling. Always execute trades that fall within the range of your risk appetite.