Ten Reasons Why I’m Buying Bitcoin Right Now for COINBASE:BTCUSD by SPY_Master

This is a log-adjusted chart of the whole worth historical past of Bitcoin ( BTC ) since knowledge grew to become obtainable on Trading View. I utilized a primary Fibonacci retracement overlay from the very best excessive to the bottom low. I additionally utilized a pattern line that connects the 2 lowest (response low) worth factors in Bitcoin’s historical past as an example the extent the place worth sometimes drops throughout peak worry (the road relies on a log-adjusted scale and is subsequently a log-linear pattern line ).

With this mentioned, listed here are 10 explanation why I’m shopping for Bitcoin proper now.

• (1) Price is approaching a really vital Fibonacci retracement degree (round $17,381).
• (2) Price can also be approaching the log-linear pattern line created by the worth factors at previous bottoms.
  
• (3) These traces have roughly converged in the identical normal vary, which is uncommon. They additionally coincide with vital trend-based Fibonacci retracement ranges, in addition to EMA exp ribbons which have beforehand supported Bitcoin’s worth.
• (4) The Crypto Fear/Greed Index reveals historic worry is happening proper now. Today we’ve reached the second-lowest ranking on the index ever, indicating that worry is probably going at or practically at its peak. As skilled merchants know: Sell when others are grasping, purchase when others are fearful. Link: https://alternative.me/crypto/fear-and-greed-index/
  
• (5) The Bitcoin hash ribbon signifies that capitulation has began. The second a sudden, fast transfer greater happens, that indicator will change from capitulation to purchase.
• (6) The Fibonacci Time Zone indicator means that Bitcoin’s subsequent main impulse wave could also be underway in late 2023, at which level the worth can simply push over $100,000 if Bitcoin’s log progress curve continues as anticipated.
• (7) Recently, Bitcoin has been inversely correlated to the U.S. greenback foreign money index ( DXY ) on the weekly chart (R= -0.733, P-Value: 0.0003, R-Squared: 0.3426). The DXY chart is displaying indicators of a topping candle close to an vital Fibonacci degree. It is my perception that we’re at peak inflation proper now, and that the greenback index will quickly prime if it hasn’t already. The corollary, subsequently, could be that Bitcoin’s drop might cease, assuming the unfavourable correlation continues. Even if I’m incorrect, there’s a good risk-to-reward setup right here.
• (8) The worth of Bitcoin has reached the 250-week transferring common. This transferring common efficiently supported worth at its earlier response low in March 2020. Many merchants are coming into Bitcoin for that reason alone. Smart cash has steadily been flowing in as weak arms promote to robust arms.
• (9) The worth of Bitcoin has been strongly positively correlated to the Nasdaq 100 ETF ( QQQ ) (R= 0.939, P-Value: 0, R-Squared: 0.6647). The charts present that QQQ is probably going at a big backside. The NDTH is close to the bottom it might probably go. The brief derivate of QQQ ( SQQQ ) is already displaying indicators of fewer and fewer market individuals opening up new brief positions on tech, which is the primary signal {that a} backside is in for tech, and which might truly set the stage for a significant brief squeeze. All of that is extraordinarily encouraging for Bitcoin which is extremely correlated to QQQ .
  
• (10) I can afford to tackle the chance of Bitcoin falling all the way in which all the way down to the following vital degree $8,000 – $11,000. This decrease degree is the place the Visible Range Volume Profile suggests an absolute backside might happen. Of course, the following Fibonacci degree can also be in play as an absolute backside as effectively. That degree is all the way in which down at $5,888. Reaching these ranges on any sustained foundation could be unlikely if the Bitcoin log curve is to proceed. Perhaps a momentary blimp all the way down to right here is feasible, or if a significant Black Swan occasion additional exacerbates unfavorable market situations. It’s all the time vital to make use of cease losses except you have got a long-term plan to build up an asset and never promote in an emotional state, and naturally, if you’ll not be topic to a margin name.

While solely time will inform if this evaluation proves true, there are too many causes to purchase Bitcoin proper now for me to not purchase. I’ll accumulate as much as 10% of my portfolio and my common down quantities will improve at every vital degree till I attain 10% of my portfolio. Again, averaging down solely works for those who’re a long-term dealer (the time horizon is years) and also you solely wager a set proportion of your portfolio.

Blockchain know-how is the long run.

Not monetary recommendation. As all the time something can occur.