Yesterday, we laid out the bullish case for Bitcoin 5000 long term. We stand behind our case outlining the long-term probabilities over the next several months, despite the fact that right after we posted it, BTC decided to crash $400. Not our best timing. However….
Short-Term Patterns said that drop was possible as we shared with subscribers in this post several hours before the “crash”.
Bitcoin’s price as we write this post is $2398 so it’s mostly recovered, but yesterday’s crash did raise 2 important questions:
- If you are a long-term trader of BTC, are you prepared to hold through multiple days like yesterday to see if BTC can make it to $5000 and beyond?
Question 1 is a cash management and position sizing issue, which we’ve covered in the past and will cover again in the future. Today we focus on question 2 :
What’s a good investment ST (short-term) or IT (intermediate-term) if Bitcoin drops?
Here’s the trade we’re watching:
Crypto that’s only sold on the BTC exchange
During the last few months of BTC’s epic move up (which we saw in the patterns months ago on twitter by the way), we routinely noted that currencies sold on the USDT exchange were all moving up significantly while many currencies only sold on the BTC exchange with LT bullish charts were lagging.
While the specific charts, patterns and indicators of any crypto traded should be the primary focus, we’ll be watching the BTC exchange very carefully for high probability trades if (when) Bitcoin corrects, because we believe there’s a good case they’ll outperform other investment options.
And of course, @cryptopatterns will share our pattern analysis and targets with subscribers!
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