[Vlog] Bought the bitcoin dip at $8k, Now the waiting game begins
So yesterday was another dramatic day for bitcoin. Today's blog (which I recorded last night) I discuss buying back into Bitcoin.
Heads I win, tails I win
The reason why I take profit is for days like yesterday. As discussed in a previous blog post, I like to sell a small percentage of my bitcoin as the price doubles. Psychologically this suits my personality.
If bitcoin continues going up I enjoy the gains with the bulk of my holdings while having fiat to diversify with or spend.
If bitcoin drops I get the option of buying back in and either increasing my bitcoin holding or locking in fiat profit.
Here we go again
This 'crash' reminds me of the last time I bought the Bitcoin dip. It was around the time of the Jamie Dimon/ China Banning bitcoin FUD.
Bitcoin dropped from $4k to $3k, it felt like a market overraction to news. Having taken profit at $4k, I couldn't resist the temptation to buy back what I'd sold. One of the good things about buying back is that you get a good feel for where the resistance ponts are. So rather than selling at $4k when bitcoin rose again, I took profits at arouns $5k.
When bitcoin first hit $8k, my next profit taking milestone I rode the uptrend ans took profit at $11k. Sentiment was such that it seemed certain bitcoin would break $10k. I was more disciplined with taking profit at $16k as $32k (my next profit taking target) seemed extremely headed territory indeed!
I wanted to buy the dip to $11k in December however I was in India. It may have proved a blessing as I've been able to buy a bigger dip. So just over $8k was my re-entry point.
Waiting game
Now I sit on my hands and my bitcoin bag. If it goes up quickly, great. If it goes sideways or down slowly, I'm prepared to bunker down and ride it out for 18 month, 2 years if I have too, like I did in 2014. If it crashes further, saybto $4k I'll take a view on whether to buy even more.
The good thing for me is that there are ways to earn cryptocurrency, Steem is a prime example. There are also other projects that could potentially grow in fiat value even in a bitcoin down market. More importantly the downtrends are an opportunity to focus on the technology and potential contributions I can make to the eco-system. I tried to do it during the last bear market. I'll be in a far better position to add meaningful contributions in the next one.
Skepical Contrarian
When it comes to trading, I prefer making decisive moves or hedges around big events or milestone to day- or swing trading. Being a contrarian to over-zealous public sentiment has worked well for me. I'm naturally skeptical of the mainstream narrative as 90% of "news" turns out to be over sensationalised horseshit in retrospect. People will write or say anything for clicks.
For me as long as the fundamentals of the technology is strong I remain long term bullish. However I always hedge against short term exuberance as markets, like life, never progresses in straight lines.
Waiting game for me is somewhere between 3-5 years. HODL
I love your analysis.
So wonderful to find like minds in trading.
I also take profits in bits but it requires a lot of discipline and alternate income sources to hold fiat till u get another entry point below where you bought initially.
This is one of the best philosophies of trading 'buy when others are scared and sell when others are happy'.
For those who are investors, choose an entry point and hodl. Never ever sell at a loss, u will be glad u did so in a few months.
Cheers
You only loose when you sell! I'm a bit newer to the investing game so these types of scenarios are all apart of the lesson you need to learn.
@nanzo-scoop Great post and HODL on!! Follow me and as I like crypto also! Good luck and BTC to the MOON!!!
Great entry price, I bought too. Be prepared for another potential swing down though, this is a little different to the last few dips that quickly retraced. Like from 7.5 to 5 and 5 to 2.9. But the idea of buying the last big high in BTC seems to be holding.
Wouldn't be surprised if the markets try and stop out a bunch of longs sub 7.5k.
I'm long and strong my cryptos as well. It helps to have started buying in July, so that even when the market corrects, I still have a lot of profits. It must be a lot harder for newbies who are staring big losses in the face.
Buying back in when the fundamentals have not changed, is never a bad idea. These last few days really show the importance of taking some profits off the table every once in a while.
Take some profits along the way and build that opportunity treasure chest people!
I completely agree! It's hard to time the market, but it is still so critical to buy in at good positions. Buying in at good positions takes research, time and patience. But in my own experience you have more flexibility and are able to take advantage of selling and buying opportunities in crashes and corrections (doesn't mean I've done this gracefully every time though).
Definitely true @ronparlay!
I think we just all learned 12k are our base HODLrs, the rest are noob speculators. The base will grow, but I doubt it will go below 12k without something disastrous happening to the Blockchain.
People need to keep in mind all the ALT coins that are birthed from Bitcon, add them all up and bitcoin is still well over 20k. Bitcoin gives you gifts.
Wow! You're good at trading! I tried riding these waves and I just got dizzy.. Thanks for sharing very effective strategies. They all make sense.
This is an amazing way of earning from bitcoin, buying when it drops in price and selling when it goes up.
And another thing
Exactly, I believe steemit is a blessing to the whole cryptocurrency people.
You just have a means of getting capital for continuous trading.
You are very good leader continues. vote for me, I am new. follow me @saizor