Veterantrader
Bitcoin - Are we going up or down - let me give you the answer. It is simple but I have to admit that sometimes it's hard to tell. The best thing to do to make it easy on you is to chart BTC in multiple timeframes. Alts can give you the impression that the bottom is in because they begin to creep up while BTC ranges or it moves up slightly. Right now it is clear that BTC (The Supreme Leader of crypto) is on a downtrend still and it is easy to see why. As long as BTC does not pop over my thick red downtrend line we are still going down. There are also clues as to what's going to happen short and long term, I am not a psychic nor am I trying to guess the lowest point to get in. The point of trading is to find a safe place for you to make money. You have to change your mindset that in one move you'll get rich. I have made money taking 5 to 7 big bets per year, how? By buying at or around the bottom or after we get over a resistance point. In perspective where is BTC right now? At the very top of the downtrend channel. Indicators are showing a down move soon but it may also go up. SO what should you do? Wait and see if it crosses my redline and also how it crosses the redline -- with energy and volume or in a weak manner.
We are currently looking at the 12h timeframe showing an early death cross, a death cross is when the yellow line (the 50MA) crosses below the black line (the 200 MA). Recovery from this event is almost never quick, so with this knowledge, you simply stay out and wait. Another clue is that we are at the top, it will have to make a choice to either go over the redline (unlikely) or go down (Likely) or range and exit the triangle (likely).
Let's look at the 1D timeframe. In this chart, you can see that BTC's price is at the very top of the channel which is not a good place to buy. It is also far away from the 200MA (which historically) any asset in general, wants to be near the 200MA which in this case it means a drop.
This timeframe is my secret weapon -- the long term view. In here you can see that we are very far away from the 200MA and also at the top of a trendline/channel line that has been impossible to go over for a long time. If BTC makes it out of the redline it's time to sit up and pay attention. So what exactly is my strategy? Simple, to wait until we get low enough to make it a low-risk entry point. If we hit my entry points of the 50MA or the 200MA in the 3D I will be very happy to jump in. To be clearer, my entry points are marked by green X's.
THE TREND: Going down.
THE OUTLOOK: Unsafe to buy BTC.
Be safe and follow me to stay ahead of the curve.
