Volatility seems ripe to spike!
Updated
This post is really for the masses that are looking to DCA the market. The strategy is simply to identify long red candles and make strategic buys at the bottom of these long red candles. Over time, patient acquisition keeps the Dollar Cost Average investor out of the FOMO mentality! I believe this "toe into crypto" mentality will pay off in the long run. I'm looking for a long red candle to break down below the 100 day MA. Let the market react off the big daily red candle and sit out. Wait for the next big red candle.
It seems like BTC wants to crawl down the top of the major downtrend line. Remember, like I said in one of my early videos on crypto, "The bite of the bear is long to heal." Keep in mind that there may be another waterfall before the final bottom. You may want to keep dry your lottery money. I told a friend of mine last September, "I will be very aggressive at BTC $2000." Since we're not there yet, the best strategy (for me) is too nibble and DCA.
So there is a Powerball drawing tonight for an amount approaching 1billion. Your chances of cashing a ticket are so close to zero that it is laughable! If you just spent that lottery money on BTC, you still hold a possible winning ticket! I predict that Bitcoin will never go to zero in my lifetime.
It seems like BTC wants to crawl down the top of the major downtrend line. Remember, like I said in one of my early videos on crypto, "The bite of the bear is long to heal." Keep in mind that there may be another waterfall before the final bottom. You may want to keep dry your lottery money. I told a friend of mine last September, "I will be very aggressive at BTC $2000." Since we're not there yet, the best strategy (for me) is too nibble and DCA.
So there is a Powerball drawing tonight for an amount approaching 1billion. Your chances of cashing a ticket are so close to zero that it is laughable! If you just spent that lottery money on BTC, you still hold a possible winning ticket! I predict that Bitcoin will never go to zero in my lifetime.
Note
BTC did not wick down to the 100 day MA. Clearly labeling this as a "short" was in error here. From a trading perspective, this would have been a tight stop loss and 1-2% loss of stack.This is not a "trading perspective" here at Toe into Crypto. This is a little chunks over time approach. This is a NO FOMO approach. Since the red candle (at the time of publishing) only moved 1% at the time, the DCA investor then simply sits and waits for 8-10% red candles. The bottom of a 1% red candle is not what I'm looking for here.
Note
So clearly the close on March 16th above the major downtrend line was a "no look back" moment for BTC. My thought on the original post was that BTC might trundle down along the top of the long downtrend line. I was clearly wrong. As of today BTC has gone straight into the Major Fomo Zone. DCA zealots and HODLERS can sit back and watch the show! Just because every one else is in Major FOMO does not mean that I should be in FOMO mode ... that is their game, not mine,. We can see that BTC blasted up and through the "Slam down rejection zone." Defying the slam down at the downtrend line was clearly a bull sign and the refusal of BTC to crawl down the dotted line proved bullish as it entered into the Big Wickenacci zones.For the traders ... wow!. These are days that a leverage trader dreams about! For the accumulators out there ... Don't get played! Just wait for 10-20 percent red candles and nibble away.
It looks like there is a good chance that BTC could run all the way to the top of the Major FOMO Zone. There could be a sharp red candle or two coming up. But we are in the Big Wickenacci zones. I think I nailed that zone in advance.
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