During the rise from 30k to all time high, I did assume the market to to drop back to 34k and test the support levels because it was crossed in a short period of time and I was in the belief that the support level had not developed much there. However a few months and the price continued above 50k and I assumed that I might have been wrong and support levels did become strong there.
I was eventually shown that my first assumption was correct, just that it was never tested till this month when prices dropped and the 35k support level was tested. I still consider the 30k mark to be the safer buying option or even lower if we see that. This is not the time to sell, do that again when bitcoin crosses beyond 50k.
Right now, just wait for lower prices to buy in.
According to the logarithmic regression band that some traders use to calculate future highs and lows the average price of Bitcoin right now is ~32k USD The lows of the band are at 19k.
Historically the lows of this band were always the lowest point to which Bitcoin was falling in a prolonged bear market and it often returned to and above the middle range.
I remember reading a thread some time last year where people were asking if Bitcoin will ever fall below 50k. Funny how in a bull market people tend to be unreasonable in one way and in bear the other.
I love this your write up, you took your time to come up with it. What I have learnt from this write up majorly is that we are having a global 'bad market' it not just about crypto but also stock markets. Every other aspects is for newbies who are yet to experience bitcoin in cycle of four years, because if they have believe me they will not be panicking and talk more of panic selling. I think life is about learning and growing, certainly they will learn from this one and perhaps do better in the future when the market goes bearish.
Thanks. Good luck with your investments.
Basically, this should what investors do and avoid not panicking and selling during the dip, I tend to agree with this idea. When there's a dip, buyers would be the right time to enter the market and sellers should hoard their assets until the hype will come. We know that there's no infinite growth of Bitcoin price or let's say the entire crypto market, corrections always occur at any time. It always fluctuates creates a wave position that might up and down and when people listen to the FUD, it's expecting that the market will continue going down.
I believe that the market will not go down beyond $30k, for short traders who bought Bitcoin at the dip for sure they're happy to see their profit now while the earlier investors still hoarding their assets.
Selling in a downtrend isn't that bad as long as you do it early on. Unfortunately people tend to hold it off and every subsequent drop is like torture to them. When you put money on the line you need a plan. People should ask themselves if they can afford -50%. If not, they should set a stop loss or exit the market with a small profit in a bull market and be done with it. Worst thing you can do is invest money you can't live without, see it drop 50%, accept defeat and sell and then feel like shit for years.
