Time to buy Bitcoin? This chart watcher says yes!
Bitcoin has gotten absolutely smoked the past few days but there may be some relief ahead.
Yes, yes I know it may not seem like a good time to buy bitcoin or anything else for that matter.
However, there is some history on our side that may say now is the time to buy bitcoin for some quick gains.
What do I mean?
Over the past 2 years, any time bitcoin has fallen by 12% or more in a 2 day period, there is often a bounce right after.
Don't believe, me look at the chart with the data points included:
(Source: https://twitter.com/OddStats/status/1063166247079075840)
As you can see a lot of those data points are at or near bottoms.
In fact, had you followed this strategy the last time this happened, you would have bought in March of this year and enjoyed close to a 50% gain over the following 5 weeks.
Not too shabby eh?
Will history repeat this time?
No one can say for sure, but there might be a slight glimmer of hope at the end of the currently very dark tunnel.
However, keep in mind that had this strategy been followed in December when this criteria was met, investors would have lost close to 30% over the following 2 days.
It's not a strategy for the faint of heart.
Stay informed my friends.
Follow me: @jrcornel
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Cool. Thanks.
you ever think that volatility is more important than charts/price/or volume? I've been following hedgeye and they're all about volatility, as well as changes in acceleration
Personally I think it is a chicken and the egg sort of thing. I don't really think volatility just happens and then prices go up. I think it tends to happen at very important supply/demand zones which can be seen on charts. The Bitmex CEO recently said that bitcoin can't go up because there is no volatility, well now there is... see what happens.
I am still looking at volumes as they have come down a bit and have not been in capitulation territory in my opinion. Hold on to your seats as it may be an interesting weekend as volumes drop!
What price are you looking for?
No price in particular but a steep drop with heavy volume followed by a strong bounce. That will get me positive.
Yea the fact that we haven't seen a strong bounce likely means we hasn't seen the bottom yet. Bottoms often tend to be "V" shaped.
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I will get there, eventually.
It's always good time to buy more Bitcoin! ;-)
Haha, historically that has been true.
Nice article! It's always a good time to buy btc. By the the way if you have a business this project is fit to you https://twitter.com/AleenaHyde/status/1063643217009225728 Sphtx can help you to grow your business.
How does it help?
Buyer's gonna buy anyway, this analysis of past performance could be a real catalyst. Cant imagine if the price decided to break through that support line. I'm not a TA guy but this chart definitely looks interesting.
I think buying now, there is a good chance for gains over the next 5 weeks.
"As you can see a lot of those data points are at or near bottoms."
To me this is the key sentence, and it´s not history repeating itself, it is the investors who make the correct evaluation of BTC price, and going below this point is unthinkable. In December whoever thought buying was a good idea, even with BTC going down 12%, was not thinking clearly and was affected by FOMO.
Yep, great point. I expect us to have a pretty good return over the next 5 weeks for anyone buying now.
Everyone is waiting for the reality.
What is the reality?