Daily Candles: Scary times but it's leverage buy time

in #bitcoin2 years ago (edited)

If you've been reading my posts you know my 'go leverage long' target was ~$8k. Here's some of the reasons why.

  1. We just hit a year long trend line. Has hit 4 times with a bounce each time.

  2. 200D MA, moving averages are a great place to look for bounces.

  3. RSI has hit oversold. Again in the last year we have seen a bounce when this happened each time.

What could go wrong?

So much! First TA is just an indicator, with the more the better but still only an indicator. If enough more want to sell than want to buy it will continue down with no regard for TA.

As said I have entered leveraged territory which brings in all new dangers. Even if you get the general geist of the move if you mistime it or over extend yourself you could be in trouble. Make sure you know where your liquidation point is and you have planned for that.

This is especially important as even if I am right and we get a bounce here, it could easily overshoot the line by 5-10% before sharply bouncing.

So be careful.

Thanks for reading.

KevinBacon





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