Don't be overly Bullish!

hansdewet (58)in #bitcoin • 8 years ago (edited)

Hey Steemians.

Before we start I would just like to say that I am not a trader, but I like to look at myself as a long term investor. I plan on trading in the future when I have enough information to be confident. I am just a guy on steemit telling you what I think. Don't base you decisions on what I do.

One thing that we must remember is, if you are trading now or investing and thinking the bulls are back, it would be very premature in my opinion. We are clearly still in a down trend when you look at the longer time frames like the weekly charts. I listen to as many different traders as possible and most of them are still very bearish. TA might be a load of crap. But these people look at trends and markets for years and use some fundamentals. This market could easily be defined as a bull trap. History tends to repeat itself and if this is the same bear season as 2014, which lasted 400+ days. If we use it as a guideline, we might only see bulls back in September and prices as low as 4k. I don't want to be the one raining on the parade. But remember not to over extend yourselves in this uncertain market. One of the best investment strategies if you want to rest with peace is dollar cost averaging. Easily explained as putting in the same amount each month regardless of price.

Everybody seems bullish, my short time in crypto has already taught me, when on the side of the majority opinion you should take a step back and reflect.