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1/ Have you watched my latest #BTC analysis? I mentally prepare you for the π©Έπ we're seeing today!
Consolidation is a psychological battle!π€Ί The victor must prove itself continually before trending onwards; longer battles imply stronger forces. π§ π§΅
Consolidation is a psychological battle!π€Ί The victor must prove itself continually before trending onwards; longer battles imply stronger forces. π§ π§΅
2/ I'm using a metaphor of a battle to describe the process of consolidation, which refers to the strengthening and solidifying of a position or entity, in this case, #bitcoin.
In this metaphor, the "victor" is the entity or position that successfully consolidates itself. πͺπ«‘πͺ
In this metaphor, the "victor" is the entity or position that successfully consolidates itself. πͺπ«‘πͺ
3/ Consolidation is a critical process in which an entity or position is strengthened and solidified over time. Rather than being a one-time event, consolidation is an ongoing process that requires consistent effort and attention to maintain and strengthen the position.
4/ When I say that markets are consolidating like a spring, it means that there is a buildup of potential energy that could be released in any direction. This energy represents the buying and selling pressure in the market, with the bulls and the bears competing for dominance. βοΈ
5/ The metaphor of a spring emphasizes that the market is in a state of balance, with both buyers & sellers competing for control. The eventual release of this tension could result in a sudden, significant move in either direction, depending on which side has more strength.
6/ #Bitcoin's whitepaper set the fundamental use of #blockchain as a purely peer-to-peer version of electronic cash, allowing direct online payments w/o financial institutions. It solved the double-spending problem, serving as a dependable unit of account & store of value. πͺ
7/ Buying any #cryptocurrency at the top can subject you to harsh declines, as seen in the recent -78% retracement. But over the past 3 years, Bitcoin's price has grown over 2000%.
Capturing the average is a powerful way to protect your position from the downside. π§
Capturing the average is a powerful way to protect your position from the downside. π§
8/ The strategy that works best is a boring one: buy & hold, compound interest along the way. Traders might have wins, but they pay a price for the constant attention the market demands of them. π΅βπ«
9/ When trading, it can take 1 wrong move to wipe out all your profits, so I recommend trading with a small % of your portfolio to scratch that gambler's itch. You would hate to someday zoom out and realize you only captured a fraction of a % of the move if you just bought/held.
10/ In bear markets, buyers are punished and in bull markets the sellers are punished. Over the past 4 months, we've seen extremely harsh dumps go on to bounce into higher highs. When the market dumps, people fear sell into weakness & miss out on unexpected recoveries: ππ₯πππ²
11/ Despite all the price chop, the trend is upwards since Jan. 2023. Sell-offs can be fear-filled, and often fear leads you to selling the bottom. Imagine selling -22% after #SiliconValleyBank broke, only to see price bounce +44%. β οΈ You can be your own worst enemy when trading!
12/ You can see in the next tweet that this area of consolidation took 3-weeks to battle, and the bulls have successfully consolidated and trended onwards, but over the past 12 hours we've moved into a stage of retesting, but will it hold? Keep reading to read my hypothesis...
13/ Here's why I think this range will hold π But don't miss the next tweet because there is hidden bearish strength with every move to the upside!
When resistance breaks, that zone becomes support, but must be retested AND produce a HIGHER HIGH!! π
When resistance breaks, that zone becomes support, but must be retested AND produce a HIGHER HIGH!! π
14/ If you watched my latest YouTube video, then you'd know that the current hypothesis being tested is that the 4-year cycle lows are in for #bitcoin, stamped Winter 2022 at $15.5k...β οΈβ If/when we retest December lows, that's a -47% dop. This is why #DCA is so safe/dependable.
15/ Thanks for reading! π I hope you enjoyed this study of market behavior to refine your investing strategy! "Following the rules" can be boring and feel improper at times, but often saves you from future headache. You can watch the rest here:
16/Thanks for all the support! I hope my work serves to expand your investing and trading acumen. If so, #retweet the first tweet to pass it along! π
+ The thread below breaks down the video segments and provided links for everything I discussed! π
+ The thread below breaks down the video segments and provided links for everything I discussed! π
https://twitter.com/the_economystic/status/1648539696954327040?s=20
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