Bitcoin Still Waiting For Better Buy Signal

Price patterns alone like the consolidation developing should not be considered in isolation. Many are calling for longs, and are unable to control their emotions or “fear of missing” the next move. In terms of the rules we employ, there have been a couple of recent buy signals but we choose to AVOID them. Why?

Sometimes it is better to forfeit better prices in exchange for a better environment. Bitcoin needs to prove that the previous bearish momentum is no longer in control and offer a more stable environment. To accomplish this, the 40K resistance must be taken out. From that point, we will then look for the next buy signal for a swing trade.

Patience plays a VERY important role in our trading process. If you think about it, patience requires no effort, special knowledge, special tools, etc. You just do NOTHING, and the best part is if we are wrong to do nothing, we don’t actually lose anything. All we have to do is wait for the next setup. It sounds easy, but MOST people have a very hard time WAITING.

IF on the other hand, Bitcoin breaks 33.5K, the next support to be tested is likely to be 30K. IF buying activity fails to hold it there, the 26K and 20K levels are next in line to consider. This is the RISK traders face by buying at the current prices whether they realize it or not. Like I mentioned earlier as of right now, the broader structure favors the bearish scenario.

This philosophy also carries over into the alt coins as well. No matter how you slice it, Bitcoin still leads. It doesn’t matter how compelling your alt coin chart looks, or how many buy signals appear. IF Bitcoin breaks, they will most likely follow. This is why we regularly remind our followers not to take on too many positions in the alt coins because it is basically it is just one big Bitcoin trade.