Bottoms Up?

Is the #BTC bottom in? This is perhaps the question on a lot of crypto traders' minds. Timing the bottom perfectly is like winning the lottery. For HODLers, buying at the lowest price and waiting for a new all-time high is a dream. For day traders, this is a chance to go all in and use leverage to create wealth.

Let us look at the chart above. Look at the topmost red line. This is the swing high of 2017. Bitcoin is currently being supported by it. This is strong support. Will it hold? Maybe. Now, look at the second red line right after the top. That is the 2019 swing high. It also touched the main body of the 2017 swing high. This is also another possible bottom target. That is approximately a 28% drop from where we are right now. But let us tackle the first one right now.

Aside from the swing-high horizontal supports, we can also argue that the 300 Moving Average (MA) can also act as support. Look at the chart again, and look at the blue line. Do you see the 1st circle? That is the point wherein the 300 MA acted as support in 2020. The blue line is about to meet our first red line. So this will act as reinforcement to hold the line. Just like pinned downed soldiers being aided by close-in air support. Will it be strong enough? We'll only know once the dust has settled.

Now let us look at it closely. Above is the 4-hour #BTC chart. Several bear flags were actually created as it went down. It is like a matryoshka doll giving birth to another one. In case you don't know what a bear flag is - in nutshell, it is an inverted flag that indicates more downside action. I'll try to create another post explaining it, but let us concentrate on this first. A bear flag's bearish target is usually as long as the pole. Look at the chart above. Do you see the green line labeled: "flag pole"? I just copied the line and connected it to the breakdown point from the flag. The end of the pole is the price target. What do you notice? Yes, it touched another line. That line is the latest swing low of June 2022. The price is approximately 17.5k. Do you remember the 300 MA? It is also approaching that level. Yup, BTC is calling the marines and air force for reinforcement. And when it bounces from the level, we'll have what we call a double bottom. A double bottom is something you'll definitely want to spank. It is one of the most anticipated bullish reversal patterns.

So, is the bottom in or are we near it? I can't say. We can doodle all we want on the charts, but at the end of the day, these are all just possibilities. We are just trying to make an educated guess instead of gambling blindly. Our technical analysis might be right, but it can always be invalidated. There is actually a bigger bear flag whose target hasn't been met yet. I won't discuss it now, since we are still a long way off.

Aside from charting, we should also be aware of news that can affect the crypto market. There are several regulations in the works that will affect volatility. Just keep yourself informed.

My plan is to accumulate as much #BTC as I can at these levels. If it goes down some, I'll just buy more. That is just me. You are responsible for all your financial decisions. This post is not financial advice. I am just a confused trader aiming for the moon.