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The bullish alignment of Bitcoin’s time cycle

You should always keep a macro point of view in mind no matter what time frame you are speculating in the market.

provides a macro perspective by showing time cycle alignments on a four year cycle. That is, every four years has Bitcoin produced new all-time highs so far. Hence, this statistical advantage can be used as a guide in trading decisions. In a trade war, larger cycles are easily overlooked. We find that the best solution to this dilemma is to trade multiple time frames to reduce overall risk.

Typically, different time frames do better or worse for a trader at different times due to cycle overlap. Running multiple trades at the same time in different time frames is usually an excellent hedge. In this way one can capture the various short and long term trends of the respective trading instruments.

This is what awaits you in this article

BTC quarterly chart – patience pays off

The bullish alignment of Bitcoin’s time cycle, Crypto Trading News

Typical mistakes are early entry or a pursued trade and early exit from a steady trend. These behaviors have to do with lust addiction and pain avoidance motivation.

With the above chart in mind, most will go for it when they see an opportunity where the rewards will be paid out in ten years. The preservation of wealth that we strive for should have nothing else in mind – long-term protection with a low risk profile and solid performance.

The chart above is our most conservative view of the future for Bitcoin, both in terms of price and time. In other words, we would not be surprised if significantly higher price levels were achieved in a much shorter time. Still, we usually tend to be very conservative in estimating to keep emotions like greed in check.

BTC weekly chart – Bitcoin’s bullish time cycle alignment

The bullish alignment of Bitcoin’s time cycle, Crypto Trading News

The percentage winning numbers in the previous graphic are based on the worst possible purchase price, the All time high is. If we buy Bitcoin now or at prices below its last trading prices, those numbers will already change dramatically. That is, while our pain-avoiding emotional motivators direct us to sell in declining markets, if you have statistically high probability models over the long term to think about buying bitcoin instead, it is principle-based.

As indicated in the weekly chart above, we see a window of entry based on our quarterly exit horizon. Scenario A, the more aggressive position-taking, is already in progress when this chart is published.

Still, there is a likelihood that prices could drop as low as $ 40,000, and low risk entry points within the price drop to such lower levels would also be a welcome scenario. Should prices drop below $ 40,000, regrouping would be required before new listings could be discussed.

BTC daily chart – position building in motion

The bullish alignment of Bitcoin’s time cycle, Crypto Trading News

Assuming we get in here in our entry zone between $ 47,000 and $ 40,000 and get out in our first chart of this post, a Bitcoin investment would be an insurance game against ailing fiat currencies that could generate a profit of almost a thousand percent.

The above daily chart shows marked days and entry prices of three trades that we posted live our free telegram channel in the past five days. We took partial profits based on our quad exit strategy within hours of entering. As a result, the original stop risk of less than one percent is eliminated to zero risk. With a risk / reward ratio of 1: 1000, we think it makes sense to wait a few years with the remaining position size in order to generate substantial profits.

Some of the worst mistakes in history have been made because of myopia; don’t think long term. As a creative and inventive species, we cannot help but follow emotions that often do not have our own best in mind.

Such an emotion is instant gratification. It almost seems like a burden to wait patiently to be rewarded. However, this is the discipline it takes to be a successful trader. First, you need the patience not to be too early to enter a trade so as not to catch a falling knife. Then you need the patience not to chase a trade if you missed it. Instead, wait for a later chance to get another low-risk entry spot, or forego trading altogether. And most importantly, once you find yourself in a good trade, it is imperative to sit on your hands and let the trade ripen to full winnings.

The higher the timeframe of your game, the more difficult this test of patience becomes. Remedies include good planning, consistent review of a plan, consistent adherence to it, and the use of an exit strategy that suits your psychology. (See our quad exit strategy above).

Source: Crypto News Deutsch

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