With every rip there is a dip. That is why we sell rips and buys dips. Bitcoin is dipping today and dipping hard.
Price extension and moving averages as a guide
I often talk about the 10 day moving average because it is my favorite short-term moving average and I have found it a good guide for when price gets too extended on a coin.
When that happens it becomes my target for the pullback (or bounce). Sure enough the price of BTC behaved accordingly and just spike down to it before finding some legs at the time of these writing.
Now, I expect we could see a test of 10K (below the average) but just using the average has already given me a much better buy in point compared to when price is extended from it.
Looking at the bitcoin chart in this post is a clear example and a rather prominent one. You don’t always see price revert back that aggressively. Sometimes it grinds slowly lower while the MA catches up. Sometimes price even just go sideways. In this case price just dumped to it.
I’m keeping my eye on the price action and would love to see a test of 10k to get long. 9,800 is my dream buy in price followed by 8,500 which I know is a longshot. I may not get either of them…but ya never know I could get both.