Bullish Bitcoin Until Proven Otherwise
So Bitcoin has been showing relative strength across multiple markets as of late. But when do you start to manage risk? The problem with technical analysis sometimes is that everything can be overbought from an indicator perspective but the market can continue to rip. This is just a sign of a strong bull market. To move from a bear market to a bull market, everything has to become overbought at some point. Is that what we are seeing now? Let’s have a look at the chart to see.
At these overbought levels, it is important to not be fully invested however. So you should be looking at raising some cash. Dip opportunities in crypto are some of the best, but what if you don’t have any cash on the side? Then it is just a wasted opportunity. Various indicators are telling us to manage risk, so that is what we will do. I hope you do the same!
So as a recap, we are bullish, and we are invested, but we are raising cash and looking for a dip.
brandon@derzzycharts.com
@derzzycharts
