Bitcoin Stuck: Solution? Stay Out.

Patience. Most people don’t have it because they let their emotions run rampant. It is not surprising when you have droves of self appointed authorities and other fake gurus amplifying this fear of missing out, or over dramatizing a minor random pullback like Bitcoin is showing now.

Identifying quality opportunities begins with a set of very well defined rules. That does not mean they have to be complex rules, they just have to be adhered to. For example, one of our rules that is part of our long only swing trade strategy is to buy only at supprots upon confirmation within the context of a broader bullish trend. Since we don’t short Bitcoin, we don’t have to worry about that side of the equation, even within a persistent bearish environment (it doesn’t cost anything to stay out).

So where is support right now? On the time frame that we utilize, it is between 52,500 and 49,500. That is a pretty wide range, but based on the recent proportions and price structure, that is where support is defined. Price is no where near this area which means our rules clearly say: stay out.

Probability favors buying activity in the low 50K area and that can further be confirmed by price action. Instead of predicting moves, we let the market show its hand in areas where we anticipate a particular kind of activity. If Bitcoin can’t produce a compelling setup in an area of interest, all we have to do is stay out and wait. No stress, no fear of missing out, just following the rules.

Do we miss trades sometimes as a result of waiting for rules and confirmations to align? Sure, but we don’t lose any money from missing a move. These words may be easy to understand, but putting them into practice means going against your own bad habits and emotional baggage.

Improving your performance begins with developing your capacity for patience, not more and more information. High quality opportunities, especially on a swing trade time frame are INFREQUENT. If you are putting on more than 1 or 2 trades per WEEK, then you are not swing trading because that frequency is just not realistic in this slow environment.

As long as the trend stays bullish, we will be evaluating supports. IF price breaks below 48K, then we reevaluate the broader trend, not call for a bear market like so many will in such a scenario.

If you would like to know more about how our swing trade strategy works, check out https://greenbridgeinvesting.com/pricing