A Huge Bitcoin Breakout Seems Imminent
If you follow any half decent Crypto YouTuber, the chart below should not appear that unfamiliar to you. A long-term trendline constricting price from the top as well as another converging from the bottom. Where are we going next? Well, I'll be damned if I know, lol...
But a few helpful guidelines going forward from this point would not go amiss at this stage. For instance, I know many peepz out there are trading this narrow range. Meaning buying at the lows and selling at the highs. Whilst quite a profitable strategy to employ for now, I'd suggest getting those stop loss limits in place ASAP as the breakout has the potential to be quite significant, thus leaving you wide open for some serious losses should you be going in the wrong direction. Volume as this point is at one of the lowest in the history of BTC and judging through past experience, the longer this situation persists, the more violent the eventually reversal will be. So, be vigilant and get those safeguards in place.
Something else to consider is where we are in relation to the overall price action of BTC since it's inception. We know we've come down quite some way from the highs of $20,000. Which puts us at the "lower" end of the spectrum in regards to historical prices. So, if we get that break and it happens to be downward, I suggest letting price fall until you see a support is found. Don't just buy in after the first huge red candle and hope for the best. I've fallen into that trap in the past more times than I care to remember. The candles will always level out somewhat to indicate that either the buyers will not let price fall further or vice versa. That being the case, say the absolute bottom is at around $3000. Price hits that target and the market tussle will ensue soon after. After some time, it should become evident that we're struggling to go any lower, in which case, even a buy around the $3,500-$4,000 mark isn't bad by any means. Apart from blind luck, nobody can "ever" catch the ultimate low.
And once you're in, "if" price pulls the rug from under your feet and does push down further, averaging in at those beautiful ultra low levels is literally child's play. I've had a couple friends of mine bitten quite bad when dabbling in crypto trading due to the unexpected and volatile swings in price action. And trust me when I say that right now, the market is at it's most dangerous. Meaning we are slap bang in a period of prolonged stagnancy. The kick-start back into life after such a sustained time has way more chance of being sudden and out-of-the-blue than a gentle flick of the "on" switch. So please, be prepared and I highly recommend not to enter positions with "too" much money on the table just yet. A minimalist approach would appear wiser in current circumstances.
So, best of luck out there and let's ready ourselves for the eventual sparks to fly... :)
Merry Christmas, I hope.
All I want to Christmas is the crypto rise. :-)
Very true, buddy. :)
All rise.
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God I hope so!
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God, me too. :)
Range bound manipulation is really tradable till it breaks. U never know when that will be, could be tomorrow could be a year, but with the pressure building everywhere else seems likely the range will break hard when the economy flips. I think small range bets are acceptable, over aggression at this point is like asking to be wiped out
Wise words, buddy. I'm looking at anywhere from now to about a week for price to breakout. Will be an interesting month ahead of us, I'm sure. :)