BTC - Still Consolidating - Updated Channel
BTC is still consolidating inside of the recent down channel (blue). I just wanted to update the lines a little. We have a new E point in the current A-B-C-D-E correction.
Support levels are still the same. First is ~$9,600 where we are now (which is important because it was support at point C at the bottom of the last correction (purple). Second is ~$8,850, which is a long-term support going back to late May to mid June (yellow arrows).
The last plunge to point E is significant, actually, because we bounced back from it to $9,600 very quickly. Usually a quick stabbing like this one (fast down and fast back up again) is a sign that the correction is pretty much over, or at least that the bottom is in (point E). A quick rebound like this means buyers simply won't let the price fall any more, and quickly jump in like sharks on a feeding frenzy.
Long-term BTC is still bullish and will be for years to come; that's a given. All we need to do is keep our exposure to corrections limited. That is, avoid using too much margin; in fact, I don't use any margin at all on BTC. A lot of exchanges will offer you very enticing multiples, like 10:1 or even 100:1, where you can buy 10x or 100x worth of BTC over the amount of cash you deposit. Big mistake. 10:1 margin means if BTC falls 10%, you've lost everything. And 100:1 margin means if BTC falls 1% you lose everything. Not wise, my friends.
Just buy a little on the dips, all in cash, and wait. Just be patient and wait. Before you know it BTC will surpass its old high and you'll be glad you stayed the course. Patience, my friends. Patience.
Support levels are still the same. First is ~$9,600 where we are now (which is important because it was support at point C at the bottom of the last correction (purple). Second is ~$8,850, which is a long-term support going back to late May to mid June (yellow arrows).
The last plunge to point E is significant, actually, because we bounced back from it to $9,600 very quickly. Usually a quick stabbing like this one (fast down and fast back up again) is a sign that the correction is pretty much over, or at least that the bottom is in (point E). A quick rebound like this means buyers simply won't let the price fall any more, and quickly jump in like sharks on a feeding frenzy.
Long-term BTC is still bullish and will be for years to come; that's a given. All we need to do is keep our exposure to corrections limited. That is, avoid using too much margin; in fact, I don't use any margin at all on BTC. A lot of exchanges will offer you very enticing multiples, like 10:1 or even 100:1, where you can buy 10x or 100x worth of BTC over the amount of cash you deposit. Big mistake. 10:1 margin means if BTC falls 10%, you've lost everything. And 100:1 margin means if BTC falls 1% you lose everything. Not wise, my friends.
Just buy a little on the dips, all in cash, and wait. Just be patient and wait. Before you know it BTC will surpass its old high and you'll be glad you stayed the course. Patience, my friends. Patience.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.