Crypto Chartbook – Bitcoin’s Time To Go (Cryptocurrency:BTC-USD)

Since the new all-time high in November at around US$69,000, Bitcoin (BTC-USD) experienced a massive crash down to around US$33,500. Nevertheless, over the last two months, prices have managed to recover towards around US$46,000. So far, however, this recovery has more of sideways and consolidating kind of character. Sitting at US$44,000 at the moment, it’s now time for a decision. Either this consolidation has more upside or Bitcoin will continue to correct. The critical and decisive level sits around US$45,000 to US$46,000. Only if bulls manage to break through that resistance, significant more upside potential will be activated.

It’s not about precision but about consistency

Given the rather trendless setup, the more we are uncertain, maximized when looking at the future and trying to predict, the more we ache for precision. Precision, in this case, isn’t the way to be a consistent winner. It is about zones, not specific prices. It is about a general building process rather than identifying a particular go time spot and then hoping for the relief to have set it and forget it. One needs to readjust and refocus and never run out of discipline.

Trying to pick tops and bottoms is honorable and a desirable goal. Nevertheless, there needs to be other insurances and principles in place. If an ideal spot passes or the market doesn’t provide for a low-risk entry or enough liquidity for an exit, one still needs alternate tools to participate in the market. Our quad exit strategy allows for position building and market participation that consistently extracts monies from the markets.

Bitcoin, daily chart, keep calm, and keep trading:

Precision trading gets even more difficult in wartimes, when frequent and conflicting news events jolt prices alternating up and down.

The daily chart above shows these jolts over the last three weeks of wartime. We can identify three low-risk long trade entry opportunities (green up arrows on double bottom price scenarios) and one short trading one (red downward arrow at a double top price formation).

Our quad exit strategy takes on each of these trades a partial initial profit to mitigate risk, which allows the remainder position size to be the market’s money at risk only.

Bitcoin, weekly chart, pushing up:

Zooming out to larger time frames is another way to avoid noise and see a trading scenario more clearly, and, as such, find “go times” with more accuracy.

This weekly chart illustrates that entries and exits are rather entry zones (red and green boxes) versus a precise price level. The trader’s goal is to exploit within such a zone low-risk entry spot on a lower time frame to get positioned.

Regarding Bitcoin as well as the Grayscale Bitcoin Trust (OTC:GBTC), we find overall price behavior to be up-sloping over the last twelve months, a bullish notion. And we find a high likelihood for the momentary entry zone (green box to the right of the chart). In other words, we are right now in a price zone where it is Bitcoin’s time to go.

Bitcoin, monthly chart, March closing price:

Suppose we further remove ourselves from the noise by electing a higher time frame, in that case, we find a pat situation on the monthly chart, pat not for a more significant edge for prices to go higher up but for timing on when to enter the markets.

Our statistics show that it will be essential on what price level the month of March will be closing. With a close above current levels (white line), we will enter a bullish buy zone. Yet, if prices decline from here in the last nine days of this month, the probabilities of an immediate price advance rapidly decline.

Bitcoin/Gold-Ratio, daily chart, Bitcoin’s time to go:

An additional benefit quiet charting provides in turbulent times is to think outside the box. While all noise points toward the most heated issues, finding a trading opportunity elsewhere might be best.

In our previous chartbook release, we exploited a great go time for Bitcoin.

Last week, we provided entry points (green up arrows) for rotating one’s gold into Bitcoin. Using our quad exit strategy, the trader who wanted to not expose his money to a volatile fiat currency trading world could profit near ten percent on his first fifty percent of position size. We are now placing the stop for the remainder position size to break even entry levels.

Bitcoin’s time to go

In these uncertain times and under stress, our minds insist on reason, clarity, precise calls for action. Even the best-informed brightest minds can’t find reliable data in these uncertain times!

Luckily, a trader can, in these times, rely more heavily on charts. Charts always encompass the sum of opinion. Charts are consistently working as a reliable source to trade from.

The psychological aspect is hugely beneficial, since a consistent bombardment of news and everybody’s opinion can get quickly exhausting.

Reduce news data consumption at a time when calm and levelheadedness is the most powerful tool for wealth creation and preservation, and the “go time” will reveal itself nearly effortlessly.