Cryptocurrencies

I was Not going to Buy this Dip. But…

As I looked at one final BTC chart before heading to bed last night, I thought to myself: “Dip coming – I’ll check it out tomorrow”.

Well, it’s tomorrow now.

Of course one of the first things I did this morning was to check the BTC chart, and frankly I was a little disappointed. You call that a dip BTC? That’s pathetic! How am I supposed to buy that! I regarded it as a non-event and ate my breakfast, thinking nothing more of it.

That is… until I sat down at my PC 10  minutes ago and opened a larger version of the same chart…

Now I AM going to buy this dip, even if it’s only a couple of hundred dollars in size. 

Why?

You see the current dip has allowed me to see that (as usual) a converging triangle is forming:

Made by Bit Brain with TradingView

With a fairly flat top and a steeply sloping underside, this triangle is looking very bullish. In other words, if I don’t buy now, I may miss this buying opportunity altogether.

Trying to decipher and predict the movements of BTC since its rise beyond $6000 has been difficult for analysts. I still can’t tell whether there is an imminent big dip (say about $2000) just over the horizon or not. I have to consciously put my biases aside and try to ignore my gut instincts (which are often wrong in crypto!) so that I can read the charts with a clearer perspective.

What the charts are telling me now is that there is a bullish converging triangle. They are telling me that the slowly dwindling volume (which indicated the coming of the dip last night) is now climbing bullishly again. The charts are bullish.

In addition to this, zooming further out reveals that a bull pennant has been created. It also shows that the diagonal Fib level at 2.618 is under attack and may soon fall after repeated assaults on it:

Made by Bit Brain with TradingView

I believe that there is a good chance (60% or greater) of BTC climbing strongly before the end of the month.

Conclusion

Like all other honest analysts, I can’t be certain of what BTC will do next. There is a chance that BTC will drop significantly in the next month or two: I still believe that it should, but that’s not what my charts are showing me.  As usual I’m presenting you with what I see and expecting you to make up your own mind about what is happening. I can tell you this, I DO intend to buy this dip; I’m watching it very carefully with my finger hovering over the “Buy” button.

Whatever happens, I believe that one should remember that these are merely short-term movements in the greater scheme of things. Years from now I’m sure we will look back and laugh at the fact that BTC was once priced in four-digit dollar sums!

Yours in crypto

Bit Brain

“The secret to success: find out where people are going and get there first” 

~ Mark Twain

“Crypto does not require institutional investment to succeed; institutions require crypto investments to remain successful” 

~ Bit Brain

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