DO NOT PANIC! BITCOIN DROP IS DRIVEN PURELY BY TECHNICAL ANALYSIS
GOOD AFTERNOON STEEMIT,
At the risk of sounding like a broken record, from a technical analysis perspective, there is absolutely no need to panic about the drop in Bitcoin.
Flicking through headlines in the junk news might have you believe that Bitcoin is worthless and panic sellers have dumped the asset to zero. But this couldn’t be further from the truth!
Stop, take a deep breath and look at the way that price action is unfolding in front of your eyes.
Let’s start with a higher time frame chart:
BTC/USD Daily
As you can see on the daily chart, Bitcoin is still above daily trend line support from as far back as 2012.
As long as this level is holding as support, price is still in a bullish trend and this is simply a short term trend before resuming on the higher time frame and making new highs.
Now I know Bitcoin has smashed through plenty of short term support/resistance levels that we’ve spoken about on it’s way down, but for some further reassurance, let’s zoom into an intraday chart and take a look at the price action:
BTC/USD Hourly
This is a chart featuring the latest support/resistance level that I was trading.
You can see the green arrow marks the Bitcoin long trade that I took when price retraced to short term resistance turned support. The risk:reward was there and we smashed an easy automatic 1:3 from the bounce.
After the level broke down again, you can then see the opportunity that Bitcoin gave you to cut and reverse if you were so inclined. It’s just the exact same setup, where a higher time frame level holds, then price retraces to retest a short term area of previous support turned resistance for you to enter off.
As you can see, there is absolutely no panic selling going on and price is simply stepping between support/resistance levels, within a higher time frame bullish trend.
I implore you to not get caught up in the emotionally driven hype that you and the people around you are no doubt experiencing. Sit tight, take a look at your charts and make a rational decision to not puke the lows.
Best of probabilities to you.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
This is the market direction as it was intended to go.
A lot of flash sell. A lot of smart people buying and piling coins.
A lot of people with no knowledge of cryptocurrencies running in all directions.
What goes up must come down.
Keep on steemin'
Hey @pouchon, thanks for stopping by.
It does have a very predictable, orchestrated feel to the drop, doesn’t it. Smart money accumulating at the lows after all the dumb money that was late to the party got in at the highs.
Oh I’ll come keep steemin’! Where do you see the low coming in? 😎
Its crazy how everyone buys high and sells low. I mean geez! We should all know by now what to do but people just don't have the will power to follow through on the most basic rule in investing.
Hey @cyberblock, cheers.
Yep, we see it happen over and over again but people don’t change. The true definition of herd mentality and dumb money.
I hope you’re still in all your original long term positions! 😎
I haven't budged an inch lol My strategy of accumulating more crypto stays the same regardless of the USD value :)
I think by summer we should be back up to previous highs. HODL! No point in selling now if you didn’t at the highs.
You mean a northern hemisphere summer? Because it’s pretty damn hot in Australia right now 😂.
😂 Sorry, im from California so yeah around June, July.
I am disappointed on crypto market. Crypto market like this.
Only the dumb money.
I’m not dumb money and I hope a lot of my readers aren’t either.
Me? I sold my cryptos last week. Dunno, seems pretty rational to me. Even if I were to buy now (and I wouldn't, the market can easily shed 10% extra), I'd be making so much money, than if I were to listen to these "NEVER SELL" advice-givers.
When your advice is always sell, or to never sell, you're the irrational one.
You don’t actually read anything I write, huh?
I’m not the one that preaches hold until you die. I preach risk management and trading your plan. Making rational decisions based on sound technical analysis, which I’ve outlined in this post.
If your original risk management plan was to sell at these prices, then well done for executing it.
✌🏻.
A beacon in the sea of chaos and FUD!
Hard to put it more clearly than showing that unbroken daily trend line. It's always amazing how worked up people can get before the trend even breaks.
Many gains to you and yours, my friend.
💡 I do try!
Yeah..correct.
We have to be polite & do patience.
BTC price will surely move to upward direction.
Thanks for such informative post.
Keep doing good work @forexbrokr
The market doesn’t care if you’re polite or not, I assure you that! 😉
I hope so, because this drop is getting too much
Getting too much?
What was your reason for buying in the first place?
Only thing we can do is Hodl till we reach a good level again. Believe in technology of blockchain
If you bought as an investment because you believed in the technology back then, has anything changed today?
I felt really bad. it's good to read your story
I hope the blog gave you some rationality.
I hope the blog gave you some rationality. :( everyone says it's over