Bart Smith, crowned the Crypto King by CNBC came on the show yesterday to discuss what he believes to be the next step. At the moment, many people in the cryptocurrency space are afraid as they watch their coins sinking. Just the other day, a several professional traders noted their bearish sentiment including Dan at the Chart Guys and Alessio Rastani who provided a turbulence chart.
While there are many suggestions about the incoming bear market and deep price drop coming, there is one strategy that has worked time and time again and that is ranges. Watch the range, at least according to Bart Smith. In the interview, he mentioned that at this current time Bitcoin has bounced off its lows back in both April and February. Both lows were around $5800 with a recent high of $6800. If anything happens between those ranges, that’s the time money will come in.
According to Bart, the reason Bitcoin should maintain itself despite a bear market is its use case. Right now, alt coins that create smart contracts or implement the lightning network are still very early and evolving and are “difficult” and make take a long time to adopt. On the other hand, Bitcoin has a use case as a store of value and transfer of money which isn’t going away anytime soon.
Bart also noted that “90-95%” of all Bitcoin trades happen outside the US because people see Bitcoin as the reserve cryptocurrency. Bart also concluded something interesting regarding the volume which differs from several professional traders. He noted that right now the volatility and volume are low, and only by breaking out of this range could we see more money coming in. He claims that even if Bitcoin drops to $5000, a lot of people are likely to purchase the coin.
The key point here is to watch the range. Don’t trade the daily ups and downs but watch for a single correct time to take action. If you want to go long Bitcoin, wait for a break of either direction. If Bitcoin breaks below $5800, wait for it to drop lower and find a good entry. If Bitcoin rises up $6900, expect to buy a position on the way up.