Posts

Bitcoin in the Unknown - Breaking Historical and Economic Paradigms

avatar of @abelardobravoh
25
@abelardobravoh
·
·
0 views
·
3 min read

Welcome back dear traders and investors!

It has been a few days of different movements, both up and down in the Bitcoin or cryptocurrency market, therefore, in this article we will continue to expose some details that should be taken into account for future occasions; one of them will undoubtedly be what I have determined -and some colleagues agree- in the phrase "Bitcoin in the unknown" also associated with the breakdown of paradigms, the annual development of the digital economy and its potential. I will also carefully explain the scenario that lists bitcoin above $ 20,000 so that this perspective can help us understand what effects this new economic period will have.


Original image edited in photoshop CS5


1. The breakdown of economic paradigms brings with it new supports and new resistances:

Of course it brings with it a range of qualities that will change things a bit, this must be represented as a step, an evolutionary change, a before and after; jointly, this novel trajectory will propose in our vision new supports and new recent ones never discovered in the investment landscape, this may greatly hinder the activity of the trader or the stock broker, since we will not have such an exact foundation to guide us or take refuge in question to the purchase or sale. This does not mean that trading will be less profitable, but rather that it will make technical analysis deeply difficult, but not exactly fundamental analysis. As I always say, it will depend on the skill and dexterity of the person investing and their relative risk factor.

COIN MARKET CAP


2. A new psychological point of great firmness:

In economic historicity, various psychological points coexist that are theoretically "sacred" in the stock market, we can find this even in patterns of the Dollar / Euro or other currencies. By this I mean that it will have been a unique moment of growth in which we will study every second, especially for doing a practice that classical Latin or philosophy commemorate in an address entitled "creatio ex nihilo"; however in previous posts I commented on the need for a second uptrend and the importance of the symmetric bullish triangle.

It has been an economic duel of great work, which is corroborated difficult to reach the goal, despite the staggered purchase that indicates an agreement between bulls, and perhaps, not so difficult to operate as a bear. Of course, you always have to take into account the pragmatic sense of technology and the opportunity for growth.


3. Clean slate:

Sadly, it is a reality, it may be that everything faced these days will lead us to a cleaning of the graphs and technical analysis in some methods, because, since old supports and resistances (of great trajectory) are not present, it will complicate safe investments, Which, will now be promoted in greater criteria, by inventiveness and expectation. This is a delicate point, it places the trader in a position that is not suitable for scalping or day trading, and may increase the margin of error as a percentage (I recommend having the stop loss active or at least knowing how to make a change in day trading entries to the trading context future "trading position")

To break the $ 20,000 expectation, psychology and market interest among the bulls, will establish a new goal at $ 25,000 long and eventually at $ 30,000 that is the informational advantage that we know so far, but all this will be minimal theory until we enter a variable checking phase in which we analyze the market climate (it can be seen in key prices as $ 24,000 - $ 28,000 USD)


4. The importance of this peak moment in the historicity of Bitcoin and cryptocurrencies:

The material value of this financial world has been growing stealthily but this growth has not been carried out vulgarly as in past years that the price could vary with thousands and thousands of dollars or third injections of capital; At this time the economic evolution was worked with lessons learned.

After passing $ 20,000 (apart from setting new long-term highs) we will begin to notice that Bitcoin will increase the flow of information, news and relevance much more. In other words, we will enter an episode in which noise will begin to be made, which may reach many ears, accumulating as a double-edged factor (positive and negative)


Extreme caution these days; the near future will be decided, the trend says yes! Let's hope how the psychological market manages to operate and the presentation of the confirmation. Try to be stoic.

"Not even Zatoshi Nakamoto knows."

Posted Using LeoFinance Beta