3rd time down. BTC is at a critical juncture - Snap Crypto Update
12/08/2018/21:20CET
Bitcoin is retesting 6k for the third time. For technical analysis this is not a good sign. Hope is not a strategy so we must always re-analyse our investment positions and theories in the light of new information from the market.
Eventhough the fundamentals of #btc have not changed, we are investing and speculating in it so we must look at the market behaviour as paramount informational input for our decisions.
Here is my analysis of our current position...
This is the third failed rally off of support at 6k, this failure is a bad sign. The chances of a break of the 6k support line have dramatically increased and right now stand at above 50%
Take a look at this...
This is a weekly chart showing the price action following the rally that first broke the 1k mark back in late 2013.
Notice the 3 failed rallys?
Back then the support was around the 350 usd mark.
We tested this support 3 times and on 4th we bounced around a little and then eventually broke below it.
It would take a year for price to break back above and hold the 350 usd mark
This was the start of "the dark year" for #bitcoin.
I think it is time to put into place a solid strategy for this eventuality.
Those that had a strategy could have done quite well during that "dark year"
Hodlers with no strategy apart from hodl, were shaken quite hard to exit their positions. Many did.
Only the true hard core suicide hodlers managed to get up and dust off that experience and eventually profit very nicely.
Please let me be clear here - I do not wish this to happen. What I do wish for, is to have a plan to mitigate the effects to my portfolio (and yours) of this eventuality.
As always leave comments, have fun and trade safe.
Disclaimer: This post is not financial advice. Before investing any funds do your own research and make your own decisions. Cryptocurrencies are highly speculative.
And finally: Do not invest money you are not comfortable losing.
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