What Price is Bitcoin Signaling in the Short-Run?

 The best Bitcoin Strategy for substantial long-term gains is, as with the majority of assets, to accumulate with the long-term in mind. In fact, one should now be accumulating Bitcoin if he believes in the power of the asset and the possible price increase that could come post-halving as well as the hedging qualities of the crypto through the banking turmoil. 

It is my opinion, that traders should currently refrain from trading Bitcoin, not only because long-term returns on Bitcoin can be more rewarding but also because current market conditions do not point at a short-term rewarding trade. 

Following is the daily chart of Bitcoin:

Recent technial analysis shows that Bitcoin is facing a supply zone on the 28.6 to 30k and a support zone through an increasing trendline that is forming a bullish flag on the daily chart. 

Bull flags not only point the direction in which Bitcoin could be moving (bullish in this case) but also help us manage a price target.

For example, a price target for Bitcoin if it breaks the bull flag on the upside is 30.6k. 

Nonetheless, the bull flag sign is also subjective as Bitcoin could also be forming a double top. If we instead look at the current condition through the lens of the sign being a double top (bearish), then Bitcoin could reach two downside targets:

  • Possibility 1: 25.085k as the height of the double top can be projected to find a price target to the downside. 
  • Possibility 2: Bitcoin could retrace back to the SMMA 200 at 25.6k in the short-run
Both possibilities do not make Bitcoin a worthwhile swing trade in terms of risk-to-reward. 
For example, with possibility 1, Bitcoin could have a risk to reward of 0.98 while possibility 2 shows a risk to reward of 1.18. Both projections do not make Bitcoin worthwhile as the risk to reward is not enough for traders who should be looking for at a least a 2 to 1 risk to reward ratio. 

My opinion: 
JUST BUY AND ACCUMULATE FOR THE LONG-RUN 



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