RE: Will Bitcoin break $10,000 within a month? [Intro to Basic Technical Analysis]
I have been paying attention to prices using the #Coinbase app and have noticed a trend. Whenever #Bitcoin is nearing a new milestone there is a hesitation in the market. More often than not, this hesitation has been met with a drop in the value as people sell off. I figure these are people that got in at an earlier time, feel the current return is good enough, and sell off. Maybe they fuel the jump that often follows?
After this drop there is often a surge in value and Bitcoin jumps well passed the previous milestone, on its way to a new one.
Anyone else notice that?
Me personally, I think the value of Bitcoin is only going to go up over the long term. If you are day trading to earn then you need ever increasing amounts of money to make a decent enough return since the value is so high.
I remember when Bitcoin was $50 a coin. lol Rather interesting seeing it around $5,000 now.
Yes that's effectively what happens around resistance levels. Milestones may be psychological resistance levels. People may have common and similar milestone targets that they all want to sell at (every 1,000, 5,000, 10,000 etc..) ..there is a sell off until more new buyers come in and have an opposite reaction of seeing BTC hit a milestone target and not wanting to continue to miss out.
Yes trading is difficult and it's probably better to just be a very long term holder. I'm sure many people who got BTC when they were 5 cents sold them off when they were over a dollar and even more sold when they were tens of dollars .. it's probably better for people to forget they even have Bitcoin on their computer and remember years later.
I think that is very sound advice. Cannot underestimate some understanding of human psychology.
Your second part is exactly what I did with my first bit of Bitcoin. I got it at about $50 and sold when it first hit the $1,000+ range - I was able to catch it at about $950 as it came down. I have that paperwork I wrote for that Bitcoin framed in my office as my most valuable to date work. lol A reminder of sorts.
Now my wife and me put money in Bitcoin as a "last chance" rainy day fund. This has only bit us once in several years where Bitcoin had dropped from about $2,300 to $,1900 at a time we needed it. Those are some great odds in my opinion.
Now we simply forget we have it until we need it. My shift card stays hidden out of sight and only comes out when we need it.
Great job HODLing!
Triverse I think bitcoin is truly for long-term. We always never to afraid to buy bitcion at any resistance we know it power of growth after legalising BTC growth is milestone.
And on coindesk btc touched 5000$ which is magnify.
I remember when Bitcoin was flirting with $200 on Coinbase. lol I agree, it is a great long term investment and one I wish I had more money to pump into. Considering where it is going, value wise, it is never too late to get in and ride the wave - just the earlier you get in the wave may be bigger.