The markets are active now, finally. Weeks of Bitcoin ranging between 6k and 6.5k got me wanting to trade traditional instruments. Now I'm getting very excited as we get close to reaching a potential bottom for Bitcoin and with all the volatility in the markets. Stocks and commodities can wait, crypto trading is exciting again!
It's hard being such an adamant believer in the necessity of revolutionising the financial system while simultaneously believing that now is a bad time to buy Bitcoin.
That's not to say there weren't worse times to buy, e.g. when the manic markets brought Bitcoin up to 20k. That was wild.
As close as the bulls are to some key levels, we are in a VERY clear down trend on large time frames. Still, I foresee immense buying pressure in the 3k zone if we reach it. Otherwise I'll be looking for daily higher lows and higher highs for potential entries.
Some people believe in dollar cost averaging in to gain exposure to an asset without risking a large position at one entry price. That's fine if you don't have time or interest in analysing markets daily but right now Bitcoin is showing zero signs of a firm reversal so buying any now seems far from ideal. That's not to say it wouldn't be a profitable investment with a great risk to reward ratio, but it never hurts to enter at a better price or when the market is showing signs of strength again.
Here are a couple of videos giving my thoughts on the market as well as justifications for two shorts.
