What is BTC going to do next ?
Dear friends,
In the recent update I informed you that I was going to take some profits at 16k as there were some serious resistances. Many said I took profits too early and that technical analysis do not work. Instead of focusing on the “securing profits” part, so many of you are focusing on calling bottom/tops.
To become a profitable trader, it is about having a trading system that fits your personality & risk tolerance which can give you consistent results. If you can catch just 50% of a trend, you have a bright future ahead of you.
Hence, is taking profits at 16k a bad decision? Certainly not, as:
1. First, I bought my BTC investment positions when it was 7k (publicly available on TradingView). I am pleased with the % gains.
2. I didn’t close all my positions just in case the price continues to rise
3. I made my long-term plan of buying at 5k and selling at 16k since July 2019 (attached below). The long-term plan helps me to avoid investing/trading based on emotion.
BTC analysis
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Currently I have no idea what BTC is going to do next. I don’t see any bearish price actions yet, ie no selling activities & no fake breakout. If you are shorting the market just because price is high, you will likely get liquidated first before market reverses. Market is unlikely to reverse until most retail sellers are giving up on shorting. Think about how many sellers are currently setting their stop-losses right above the ATH?
As the broader trend is still up, I am patiently waiting for BTC to pullback to re-enter, around 8k, 10k &
12K at this stage.
Yes, it may or may not give a pullback but regardless where it goes, I am in a comfortable situation. If price continues to go up, the value of my remaining BTC positions rise in value (although is smaller after taking profits). If price pulls back, I will have the chance to re-enter my positions.
This to me is more important than technical analysis itself – “is how I financially plan and risk manage my positions.”
#Focus on the big picture
#Have a plan and execute it
Taiwan Bear
In the recent update I informed you that I was going to take some profits at 16k as there were some serious resistances. Many said I took profits too early and that technical analysis do not work. Instead of focusing on the “securing profits” part, so many of you are focusing on calling bottom/tops.
To become a profitable trader, it is about having a trading system that fits your personality & risk tolerance which can give you consistent results. If you can catch just 50% of a trend, you have a bright future ahead of you.
Hence, is taking profits at 16k a bad decision? Certainly not, as:
1. First, I bought my BTC investment positions when it was 7k (publicly available on TradingView). I am pleased with the % gains.
2. I didn’t close all my positions just in case the price continues to rise
3. I made my long-term plan of buying at 5k and selling at 16k since July 2019 (attached below). The long-term plan helps me to avoid investing/trading based on emotion.
BTC analysis
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Currently I have no idea what BTC is going to do next. I don’t see any bearish price actions yet, ie no selling activities & no fake breakout. If you are shorting the market just because price is high, you will likely get liquidated first before market reverses. Market is unlikely to reverse until most retail sellers are giving up on shorting. Think about how many sellers are currently setting their stop-losses right above the ATH?
As the broader trend is still up, I am patiently waiting for BTC to pullback to re-enter, around 8k, 10k &
12K at this stage.Yes, it may or may not give a pullback but regardless where it goes, I am in a comfortable situation. If price continues to go up, the value of my remaining BTC positions rise in value (although is smaller after taking profits). If price pulls back, I will have the chance to re-enter my positions.
This to me is more important than technical analysis itself – “is how I financially plan and risk manage my positions.”
#Focus on the big picture
#Have a plan and execute it
Taiwan Bear
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