THINGS TO CONSIDERED WHILE BUYING CRYPTO

It is important you do not buy a coin when technical indicators are showing strong overbought readings. Extreme overbought signals, for example, the relative strength index hitting over 90 tends to be a bit of a red flag. When this happens. your spidey sense should be going off. In fact, any reading over the purple box for the relative strength index so 70 and above but especially 80 and above and 90 are warnings that the market is getting overheated and you should start thinking about looking for exits not entries. For example, RSI on Matic topped out at 97.5 just a couple of days before the blow off top hit at 2.91 but you need to use it in coordination with other indicators.

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Another thing to consider is Resistance, everything is pumping and you're late to the party but screw it, let's click the buy button anyway. This motion cycle kicks in right around resistance. Let's look at this Bitcoin chart which is a great example. Bitcoin stalled in August 2022 right around $25,000 and fast forward a few months and we get a resistance. We can see two weekly candles for Bitcoin both struggling to get over the $25,000 Mark. Also note that the volume is very low so that's showing that the move is running out of steam at resistance. Buying at this point is dangerous and of course the price has fallen by 20% in the following weeks. Instead of buying at resistance, wait for a breakout, wait for a retracement to come in either way. You're going to be likely making a safer move based off of the resistance.

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9 times out of 10 when there is an announcement about a crypto project partnering with one big company, the price of that coin will come back down in a few weeks once that short-term Buzz wears off. These big news stories can certainly improve the long-term fundamentals of any particular coin. You're teaming up with Apple, depending on the partnership can really have some solid value. But for the most part these big stories, no matter how impactful they might seem at first, tend to have little more than a short-term impact on the price. When you show up late to that news, when you buy after the major news has already been released, the pump has already come, then you're signing yourself up to be nothing more than exit liquidity which is not awesome, You need to have patience in this game, resist the urge to FOMO into big pumps that are caused by news. Sometimes it's going to keep pumping but that's the exception not the rule.