Even if the death cross is coming near
In 2015, I thought Bitcoin was a scam because I did not know anything about it.
My husband invested in Bitcoin and altcoins around 2017. I saw him setting up a mining computer in our living room. It was so loud; I thought that the computer was going to explode. That was all I know about cryptocurrency.
To really know about it, I had to study blockchain and cryptography. I do not want to invest my money into something I didn’t know.
Luckily, there are some simpler explanations all over the internet, and it really piqued my curiosity until I found myself buying Bitcoin and Ethereum this 2021.
I bought BTC and other altcoins with better projects. I diversified funds into different exchanges such as Binance, eToro copy portfolio, BlockFI, and Prime XBT. I also found myself buying a ledger nano to just HODL some BTC in there (not your keys, not your crypto).
I even sold all my stock investments and just focused on buying cryptocurrency.
Everything was going so well until FUD came along — Elon Musk tweets, China ban news, etc.
The cryptocurrency market went down, and now we have entered the accumulation phase.
As per Investopedia:
Accumulation Phase
During this phase, price moves mostly sideways in a range. The range is identified by variable pivot highs and lows and whipsaw-type price movement.
What happens now?
As per figure 1, there’s a strong resistance around 42k BUSD and strong support around 33k BUSD.
If the price falls below the strong support, I’ll buy more BTC (not financial advice).
Why?
Because I’m a CONTRARIAN.
Let me explain:
Technical Analysis indicates that this is the perfect time to accumulate BTC while prices are low. Death cross (MA 50 below MA 200 will cross). For others, this is the time to get out of the market, but for me, this is the perfect opportunity to buy as the price tends to go lower. After the death cross is the golden cross, price tends to go higher and the perfect opportunity to sell.
Fundamental Analysis indicates that BTC is now a legal tender in El Salvador, volcanoes are now being used for mining, and Taproot upgrade means faster transaction.
To sum it all up, it’s just a simple ‘buy low, sell high.’
As per Investopedia:
What Is a Contrarian?
Contrarian investing is an investment style in which investors purposefully go against prevailing market trends by selling when others are buying, and buying when most investors are selling.
Why would I buy when the market is going up? Is it supposed to be the other way around?