Is Bitcoin About Breakdown or Breakout?

So is bitcoin about to break down or breakout? I’m no fortuneteller and I can’t tell you what your time horizon looks like. So my answer is both.

Long Term Time Horizon I’d say at the five year time horizon I am extremely bullish. I’m actually not the only one because JPMorgan Predicts Bitcoin Price Could Rise Over $146,000 in Long Term

We will get a price surge from institutional investors they will create some volatile markets to increase their gains and the buy and short. However, once they milk that volatility I believe they will bring some price stabilization which will make retail use btc as a store of value just like gold.

My strategy for long term investing is dollar cost averaging. Buy the same amount on a regular timeframe and send it to cold storage. Simple and efficient if you are bullish long term.

Short Term Time Horizon
I’m thinking we see an increase in volatility over the next 1 to 2 months as we see retail investors and institutions battle it out. Don’t fight money managers they have more capital to deploy than all of retail. If they want the price to fall it will fall. However, the retail advantage is we can be nimble. Don’t fall for flash crashes or stop hunting. Take profits often and buy dips in lots not all at once. You’ll cap gains and reduce loses if trading frequently, but to be profitable it takes this kind of discipline.

As this article points out Bitcoin falls as record-breaking rally loses steam BTC surged 300% this year. Runs like that need pullbacks and consolidation.

My strategy short term. Trade with momentum using indicators like RSI and SMAs. If you say trade you want the shortest timeframe I like the 1 min chart.

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