The Bottom for Bitcoin! What are the signs?
Everyone wonders if we are near the bottom of the crypto market.
What are the signs to look for?
Most of the Crypto's fell more than 90% off their all-time high
Price Bitcoin is approaching the 200 days Exponential Moving Average
The weekly RSI week is historically low
The costs to mine, in most parts of the world, are higher than the costs to buy bitcoin and ethereum
The total Hash rate (all miners combined) of mining Bitcoin/ Ethereum drops almost 50% from the peak
The shorts positions on bitcoin have reached a record high
The media regularly writes about the crash and new lows
Media messages focus on exiting bitcoin
Institutionals are stepping in the crypto market “over the counter”, so the retail investors do not notice.
Conclusion:
I believe that we are near the bottom of the market. It could take another 6 to 9 months to bottom out and before we are entering the next bull market.
What I will not do as a long term investor?
If you are a long term investor, do not sell in the hope that prices will go even lower. There is a change of prices going lower, but you might also miss the opportunity when prices rise quickly. If you are a trader, you probably know what to do.
What will I do?
Periodically purchase cryptos, once a week, 2 weeks or every month or at certain points of support. For example, if Ethereum drops to 80, 60, 40, 20.
This article is my personal opinion. I am not a professional financial advisor, do your own research and the decisions you take are your own responsibility.
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