Where is Bitcoin Going?

 

 

I am a pretty new Bitcoin (ticker: BTC) trader. I just recently started playing with it, along with a lot of other people.

Recently, PayPal allowed their customers to purchase Bitcoin through their PayPal account. This gave BTC a huge boost. PayPal announced this on Oct. 21, and since then, BTC has shot up from $11.923.07 to $18,901.42 as of the writing of this post.

At its recent peak of $19,915.14 on Dec. 1, BTC has retraced a bit. As of this writing, BTC is trading at $18,926.40. It was as low as $16,200 on Nov. 26.  

Anyway, I started playing with $GDLC (Grayscale Digital Large Cap Fund) about a month ago, and BTC directly about a week ago. I figure, why not!? Of course it is risky, but what isn’t risky in trading? If you can tell me, please do. Otherwise, there’s risks in everything we trade… there is no such thing as “risk free.”

What bothers me about the whole cryptocurrency landscape, is the vast amount of cryptos to choose from. I don’t even know how many there are. But there’s a lot. So what do you choose? 

Well, I stick to the Warren Buffet way when it comes to my trading: I stick to what I know! 

Admittedly so, I don’t fully understand the cryptocurrency world, but what I do know is: BTC is arguably the most popular crypto to trade. So, in my mind, there’s some “safety” in that. 

From what I’ve seen thus far, BTC, technically speaking, moves just like anything else. It seems to follow technical rules. And this makes sense, as most any crypto trader I’ve ever seen online, uses technical analysis more so than fundamentals. 

With that said, I have not fully tested my strategy on BTC yet. But, from what I’ve tested so far, my strategy works on it as well. But again, this is with minimal back testing, and just a week of trading it. 

So now, here is what I see:

Click on image to expand. BTC/USD chart. Source: TradingView

It is possible that BTC moves upwards and touches $20,590 to $20,917. I’ll just all it $20,600 to $21,000. Let’s not get picky here! BTC is a nearly $20,000 underlying.

I should note that I do not use moving averages or indicators. My tech analysis is based solely on price action and support/resistance. How I get my support/resistance areas is for another discussion *wink*.

WARNING/DISCLAIMER: Investing and trading carry significant financial risks. I am not a licensed financial or investment adviser. Nothing on dumbmoneytrader.com should be considered financial or investment advice. Everything on dumbmoneytrader.com is for educational purposes only, and should NOT be considered advice. Consult a professional financial or investment adviser before making any financial decision. Never enter any investment or trade without consulting a professional and licensed financial or investment adviser. Never enter any investment or trade based on anything you read or see here on dumbmoneytrader.com.

 

 

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