DO YOU EVEN KNOW THIS MAN?
John McAfee, the bitcoin evangelist who claimed he would eat his dick on national TV if bitcoin doesn't reach 1 million by 2020.
I'd be pretty damn worried if I was McAfee
First of all, what is going on in this market and what's the deal with bitcoin?
Check this post to get updated about the break out of descending triangle:
Now for the update:
Bitcoin is going for a turn down and the crypto market looks really depressing, 3-6 month lows all around, market cap is way down from the ATH. Meanwhile, the bear in me is absolutely taking over the bull and I see no signs of bull move for an extended time now. This conviction will be especially strong post-death cross, which appears to be imminent.
Here's a thought on the indicator on the bottom of the chart:
The relative strength index(RSI) is a measure of strength in a buying or selling rally. As the RSI approaches the 60-70 range it is known as overbought and the indicator indicates this is a good time to take profits because the remaining move has little strength left. Similarly, when the RSI reaches the 30-40 range it is known as oversold, thus making it a great time to enter a position. However, the problem I have with RSI is actually a part of the education aspect today using objective analysis.
OK...so what's the point?
RSI is a indicator that can indicate potential entry or exit points, and on higher TF charts the D & 12H can predict solid, substantial moves whereas lower TFs are better for scalping moves when using the RSI. As you can see in the bitcoin chart, the RSI is <40 and reaching the black oversold region.
The bull in me is licking his damn chops because he sees the opportunity to buy some cheap bitcoin and hopefully play out an RSI oversold bounce and buy the bottom. With the vision of a double bottom in the near future my bullish half is getting jacked as the ROCK in the WEIGHT ROOM (or should I say GMO infiltrated "farm").
All jokes aside, the issue here is the bearish part of me is seeing the price action unfold and wondering if there's any bulls left after a 3 month downtrend. THIS is the problem with the indicator, it can induce false hope that the market is certain to move in the way in which the indicator indicates. But, my primary philosophy on indicators is that they only indicate, not dictate. With that being said, the price action trumps any indicator because humans are irrational and the market is solely comprised of humans.
Such a buzzkill, man
However, I do see a bounce at the 6-6.3k support level as bulls will try to form a double bottom or "W" bottom and reverse the current trend. Sentiment has fully shifted in the market and we are now in a bearish market, and a sideways accumulation phase is necessary at some point in the future to return to a bullish market. It's just a matter of time and shaking out new people, those who invested more than they can lose and those that are uninterested in the market/space.
That last hashtag speaks for itself and my views on bitcoin and cryptocurrencies over the next few years. When you look at things from a long term investor point of view, it becomes obvious that this dip is the one that you want to be buying because the next rally could be something insane. With the splash that crypto made with bitcoin hitting 20k, the global community has now been made aware that cryptocurrencies, blockchain and cryptography are to be taken seriously. But, this comes in all aspects, including regulation and taxes, and can be a problem for the space at first. Nevertheless, I think legitimacy is exactly what the blockchain and cryptocurrency space needs the most. This will bring on many institutional size investments from companies and people worldwide as cryptocurrencies grow. I don't have to mention how many retail or "average" investors there is who have begun or will begin to invest in the space.
As you can see the bull in me takes over 100% in the long term, because this is an opportunity for anyone to invest in the future. In my opinion, the technology is groundbreaking, and is perfect to cause an overdue disruption of many industries. Just look at steemit, this platform itself is revolutionary in the content monetization area for publishers and writers like myself. The likes of Quora, Medium and other blog-like social media sites stand no chance once people find out about steemit's capabilities.
I'm trying to spread this message to all my friends in real life, I've been shilling them steemit, dtube and other decentralized apps that we have the potential to be one of the first users and early adopters. I think its absolutely amazing that we have the potential to be some of the earlier adopters of the next wave of people, technology, careers, influence, that has the potential to impact the world the way the internet has.
People have visions, you know? Ambitions, aspirations, and visions of a different world. An innovative mindset and an endless imagination. Some may think you are naive or inexperienced with what "life" throws at you, but just go and do it. I am, and I'm a student in university. Who's going to be the next wave of Jobs', Musk, Gates and others? There will probably only be a select few, but I bet there will be many contributors to the success of cryptocurrencies and blockchain implementation and enhancement to future products.
We are the early adopters, congratulations
This is going to be an epic ride.
Happy trading, good luck out there.
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