Good Evening guys, Keval here.
Today I have decided to share you strategy regarding entry time for buying Bitcoin or any other assets traded on stock exchange.
So first of all why timing is Important?
Ans. – According to best book ever written on investing (Market Wizards) they have explained the importance of timing in any investment. It is written that “ITS BETTER TO HAVE WRONG IDEA AND GOOD TIMING THAN WRONG IDEA WITH BAD TIMING” which is absolutely right. If we talk about Bitcoin, back in December when bitcoin reached $20,000 many people have bought bitcoin which is good investment but timing was wrong. So still today they can not book profits. They may need to wait more 6 months to take profits.
Strategy: (False Breakout)
Here I am taking example of 2015 Rally of Bitcoin. In the middle of January 2015, bitcoin made low of $167 and rallied higher. So $167 become major support level. In technical analysis, if major support level is breached, it signifies that bearish trend has started.
Same happened with bitcoin. In August 2015, bitcoin went below $167 and people started selling bitcoins, as it broke major support level.
Now this strategy comes into picture.
When sentiment became negative, whales started buying bitcoin aggressively. If you find any such pattern, buy Bitcoin at that level. It will yield you heavy profits.
Now let see what happened after August 2015, when False Breakout appeared,
Bitcoin jumped to $500 in just 3 months. Traders who understood the false breakout pattern and traded accordingly, would have made huge money in very short time.
So I hope we all get chance to identify false breakout pattern, and we all make huge profit out of it.
