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- Managing Real Money Is Not Easy
Managing Real Money Is Not Easy
Bitcoin Price Testing the 21 EMA
This marks the third week managing my Bitcoin investment portfolio. It's been an exciting ride so far, though not without its challenges.
Trading is new to me. As a longtime bitcoin bull, my instinct is to go pedal to the metal with an aggressive Bitcoin buying strategy. My inner maximalist wants to go all-in on every BTC dip. But, I'm starting to better understand the merits of balancing a bullish bias with smart risk management. However, the more experienced members of my team have helped temper those bullish impulses. I'm learning to take a more nuanced approach based more on facts vs feelings.
This week, Bitcoin rebounded from the horizontal level at 24.8K after a period of low volatility.
21 Weekly Exponential Moving Average
Bitcoin faces a critical test at the 21-week exponential moving average (EMA). Last week, we highlighted the importance of this level, as bitcoin broke below the 21 EMA for the first time this year. Over the next few weeks, watch how bitcoin's price reacts here. This will signal whether the bear market continues, or a bull trend begins.
Bitcoin is testing the 0.382 FIB retracement level of the latest downward move. This could become an important level of resistance to the current upward price action.
Bitcoin is also testing the downward trend line. A break above this area would open the door for further gains, while rejection could lead to retesting recent lows.
Bitcoin Market Cap