DAY 7 - Daily BTC Update
2024-12-27
Category: None

The Holidays have slowed the markets - for now.

I've introduced a third potential scenario for Bitcoin (BTC), which is bearish and might see the price retesting the DAILY 100 Moving Average near $80K. Although this scenario seems less probable given the current market sentiment, where large corporations and businesses are actively accumulating, it's crucial to consider all possible outcomes to avoid the pitfalls of an "up-only" mindset prevalent in bullish markets.

Remember, corrections are healthy and contribute to the robustness of the overall market pattern.

After yesterday's positive momentum shift, we've again seen a lull in the market and increased sell pressure as the US gears up for tax season. The recent price movements in Bitcoin indicate an adjustment to overbought conditions following the election, with technical indicators suggesting a continuation of the bearish trend in the short term unless there's a significant influx of buying support.

Keep an eye on these developments, as they could dictate the next moves in Bitcoin's price trajectory.



Trading Tip:

As we have no confirmed direction currently - One effective strategy during volatile periods like this can be the "Dollar-Cost Averaging (DCA)" approach. Instead of trying to time the market, you regularly invest a fixed dollar amount, regardless of the asset's price. This method reduces the impact of volatility by spreading out the purchase price over time. For Bitcoin's current scenario:

Set a regular schedule: Decide to buy a fixed amount of Bitcoin weekly or monthly.

Stay disciplined: Avoid investing more when prices seem low or less when they're high. Consistency is key.

Long-term perspective: DCA works best if you hold for the long term. It allows you to benefit from the average price over time rather than trying to predict short-term movements.

This approach can mitigate the risk of entering the market at peak prices and can lead to purchasing more units when prices are low, potentially lowering your average cost per Bitcoin over time. Remember, while DCA can smooth out the volatility, it does not guarantee profits and should be part of a broader investment strategy considering your risk tolerance and financial situation!

Thanks for following the 7 Days of BTC updates, and if you want these Daily - links are in my Bio :) 
