Yesterday was overall a bit of a downer for two significant reasons. One being that my good friends had to travel back home after some cool time spent here in London. The other was the crypto market prices. It turns out that the ETF authority have postponed it's decision concerning Bitcoin to September 30th. Just over a month after when it was initially due to take place in August. But the market reacted pretty badly to this news, so where does this leave us now?
Well, a critical level of support has now been broken. That being $6800. I was really hoping that it'd hold, but alas it wasn't to be. Since last evening, we've been in somewhat of a spiralling mini free fall. Price as of now is $6465 according to Bitstamp. Therefore, the way I see it, this price action should set off several mild alarm bells ringing. Looks likely that the next port of call should eventually be that old chestnut, the $6000 mark. However, it has already been tested three times already so this presents a bit of a quandary. Normally, the more times a strong support (or resistance) is hit, the weaker it gets. As what happened last night with the $6800 level. Safe to say then, we currently appear to be in a sort of "limbo" as far as price is concerned.
Now, that's not to say it is a bad time to average in. I still reckon a gradually buying up of BTC "until" we see a clean break of $6000, is a sound idea. But if, or when, said break occurs, I'd recommend holding tight and keeping your portfolio the way it is. A drop to $3000 to $3500 would not be off the table under those conditions. Another point I'd like to make.
There is a useful chart indicator that is quite indicative of price and has certainly been spot on with BTC in the past. The "MACD" (Moving Average Convergence Divergence). This analysis tool combined with the weekly time chart actually show a more optimistic view of what we may happen in the near(ish) future. Without getting too technical, both line averages have fallen into "negative" territory, showing that we are approaching oversold levels in the longer term charting windows. So, if that is the case, then we should be finding a bottom relatively soon. And if price continues to march downward a little more, then the "rubber band" as it were, will be stretching even tighter, loading up for an even stronger bullish thrust upward. Again, only my personal observations when attempting to work out these markets. But, I like to think, reliable ones.
So, all in all, I feel now is more important than ever to just sit tight and play out the rest of this "waiting game" in a logical and emotion-free manner. Remember, all markets are simply swings and roundabouts, a series of peaks and troughs. The bullish market will return with a vengeance and when it does, be properly stocked up for the multipliers to kick in. Those previous glory days are coming back again and it shouldn't be too long now...
I'm not worried where the bottom is. We're just experiencing a bright, sunny, glaring winter in cryptoland, the season of buying up and gathering slowly. 😎
Well said, everybody should buy some
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Perfect mentality, @geke! Buying on dips in the markets is a tried and tested formula to success. :)
Nice mine
This does give us new guys a great oppurtunity to hope on the buss. The market is clearly offering us a early black friday sale. And i am personally thankfull to have and opurtunity to get on affordable coins. Thank you for the post and update....
Black Friday it is! Thank you, bud. :)
Hi @ezzy. Yet another great article from you. Yes, I agree we should "be properly stocked up for the multipliers to kick in."
I also highlighted this perspective in an article written two days ago. Please refer below link:
https://steemit.com/cryptocurrency/@investprosper/staying-one-s-course-with-the-force-of-conviction
Thank you kindly, bud. Will check out your article for sure. :)
I'm a bit confused as to why postponing the evaluation of the ETF would cause the price to drop. It's not like this ETF was approved before, and I can hardly believe that past prices were largely based on the assumption that this ETF would be approved right away. To me it seems like the media is blowing up the importance of this evaluation. Sure, getting it approved, could cause some more money to flow into the markets, but seeing how much the price has dropped lately, I don't think this ETF matters nearly as much as the market sentiment in general. It seems like the only reason why we put so much emphasis on this ETF evaluation is that we either consciously or subconsciously believe that the SEC's viewpoints are representative of the world in general (which might be the case, although I hope not). Just a thought.
It's crazy, right? I wouldn't have considered it bad news, but as you say, the media have a lot to play to sentiment. Also, thought-provoking final comment. Are we all just brainwashed zombie? Lol... :)
So, all in all, I feel now is more important than ever to just sit tight and play out the rest of this "waiting game" in a logical and emotion-free manner.
I ran out of tissues Ezzy.
Man this is amazing. Never thought we could buy more Steem for $1,10. XRP 34 cents? Lol!
Keep buying and sit tight.
Crypto to the Moon!
I can tell you're a savvy strategist, bud. You're gonna do very well in life... :)
I'm confused, i'm sad because the market isn't going up, especially since i'm sick of people asking me "so you already lost everything in bitcoin", but i'm happy because i have more time and money to put into the market...
I'll be honest, if it wasn't for the crypto community being so cheerfull and sometimes united, i would probably have already be broken and cashed out everything, so sick of normies and plebs laughing and saying "You are going to lose it all" meanwhile they work a 9-5 job, get home late at night tired as fudge... you don't hear me saying "So you already lost all your life-time?"... So sick of people, really, i dont even want to get out of home because i'm tired of the population's mentality of "investing is bad, you are going to lose money"... meanwhile they lose their lifes and don't even realize it...
Ok, i kinda went on a full rant, this bear market is starting to make me angry, not sad, just angry... and maybe hungry too...
Lol, don't fret, bud. It's just the natural cycles of the market playing out. Let people talk the talk. Trust me, when you're financially free and they're still paying off their two decades long mortgages, let's see who'll be laughing then. Just a little discipline and patience required. :)
Yup, discipline! That is the hard part... My main goal is that, financial freedom! It's just hard to see the market tumbling down and down and down and down and down and down and down and down and down and down
And listen to people spitting out misinformation without any knowledge...
Now we wait.
Grab a gold beer or whiskey cause it's like we'll need a lot of them. But whatever happens, we have no where to go.
Nicely said. :)
Good job!
My guess is we will continue sideways/downwards with an increase coming closer to the new ETF decision date.
Similar thoughst here too.
my portfolio is down 70%...I will not buy any more crypto, it's all looking like a big scam. I have individual alt coins that were already down huge that are down 23% in one day....that reeks of a scam/sham, there's no way that anything of real value drops that much for no good reason. I may hold, but I'm definitely never buying again
Don't really see things as you do, but still, sorry for your losses..
Great article again @ezzy, thanks for sharing!
Many thanks... :)