So everyone seems to be freaking out about the BTC price, while we are over here zooming out and chilling out on this fine Thursday morning here at https://coin-logic.com.
As you can see in the image above, #Bitcoin is respecting the 50 day moving average as it has in past bull markets. Only on rare occasions did it cross below, but quickly bounced back up. But that is the past, we are looking at now, but still thinking about the past, because the whole it tends to rhyme thing, I digress, lol.
One thing I want to to take a gander at is the MACD that is approaching the Zero line, which is so loves to do, and while it is doing it is has lost a bit of the downward momentum as it gets closer, my hopes it that it kind of skirts the top of the zero line and turns up. That would allow a nice consolidation and accumulation period before the next leg up.
Also, we are now watching the Money Flow Indicator, testing it out on some trades and with backtesting, seems to be a nice leading indicator and letting the MACD signals be the confirmation lagging indicator. Anyway, the MFI is nearing the oversold area where as you see in the past, when it hits, we get a bounce. With this nearing the bottom, we are looking more for a floor at this level and some accumulation as dumb money is selling to the smart money that is trying to buy it up cheaper. We are buying here at the Coin Logic desk for sure. And looking to buy even if it goes lower, because we like to look beyond the short term and look more long term.
Now Another View - The Fibs...
So we love to use the Fibonacci Retracements to give an estimate of where the bottoms of a correction are, so that we can start buying up more BTC. In the past when doing some backtesting, and living through the bear market, actually that was the beginning of the Coin Logic empire was in about July or August of 2018. Started small and still growing daily! Again, I digress, lol...
Back to the Fibs... So in the past, BTC has really loved to respect and bounce off of 2 significant levels. The .5 and the .618 levels. In the bear market, most of the recorrections went to and bounced off of the .618 levels, making it very significant in our eyes, and that is why we tend to watch it. At the same time, the .5 Fib level has been the level for the bull trends. Being this is the first drop to the .618 level tells me that BTC is about to bounce it's big butt off the floor.
Zoom Out and Chill out
Most of you degenerate traders, of which we love you all, lol, are looking too short term and looking at this little thing as a double top and looking for some big correction down. Short term, yes, a bit concerning, but if you zoom out, we are seeing something a little different...
Now we may be wrong, and certainly not financial advise, but we are seeing a continuation coming in the channel that is rising. We are seeing high and higher highs, and low and higher lows, not the other way around... Now call us optimists here at Coin Logic, but we really don't think our beloved bull run is even close to being done.
Not Financial Advice
But what we are doing, is sitting back, and stacking sats! Not telling you what to do, but it is less stressful because we know the long term effect and feel the Bitcoin and cryptocurrency as a whole are going to swallow the world, lol.
Have a great rest of your day, and Don't Get REKT!!!
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