✍️ Weekly Trade Plan & Recap 8th - 13th December
Here's why it's more important than ever to avoid Bitcoin FOMO! Plus weekly analysis for the DXY, EUR/USD, Gold, Silver, S&P 500, DAX, Bitcoin, Cardano, Chainlink, Kava & LOL.
In case you were holidaying on a desert island for the past two weeks, social media and the mainstream media have been awash with news and images of Bitcoin finally reaching 100K.
For anyone who didn’t catch the move, it’s all too tempting to FOMO into Bitcoin and join the party. Because no-one likes to feel left out, right?
Well, let me draw your mind back to 2018 when Ripple (XRP) pumped from almost nothing to $3. CNBC television broadcast a tutorial for the general public on how to buy Ripple - the price was $2.57.
That turned out to be very close to the all-time high, and the following day Ripple plummeted, eventually reaching a low of around $0.10. Yes, CNBC had inadvertently called the top of the market! Or maybe they knew exactly what they were doing?!!!
Fast forward to the current time and it looks like Ripple has again, gone too far, too fast and could spike the high and reverse, or even pull back from here.
Now, if I had two choices, to either: 1) Buy at the high and hold for 6 years, only to return to breakeven or 2) Wait for a pullback to buy at a better price… I know which one I would take!
Turning our attention back to Bitcoin, we called a long at 61K with a target at 90K way back in October, as per the chart below.
The current monthly chart gives a bit more “colour” and shows two reasons why we took profit near enough to 90K. Firstly, the top of the channel (which could have sent price back down) and secondly, the 1.618 Fibonacci extension where price is currently reacting.
You can also see the reason for our entry - a Bull Channel into the larger purple channel’s support, together with confluence of a small Demand Zone and Price Pivot Zone.
Now, obviously I don’t get everything right :) because the drop we were expecting didn’t happen and the 2nd target has already been reached. However, what I am trying to say here, is timing is everything and entering a new long position here because of media-induced hype is a recipe for disaster, as there is a high probability you will have to sit through drawdown.
Instead, wait for a pullback, perhaps to 74k or back to our original trade at 61k, because as sure as night follows day, a pullback will eventually happen. Remember, markets never move in straight lines!
Next up for members, we’ll cover the weekly analysis for the Dollar Index, EUR/USD, Gold, Silver S&P 500, DAX, Bitcoin, Cardano, Chainlink, Kava and “LOL”. 👇🏼👇🏼👇🏼