If the last bull market was our playbook, right now is the time to buy Bitcoin
Bitcoin has now pulled back over 20% within the last several days.
This recent drop hasn't quit filled the CME Futures Gap, which is down around $9,700 but have gotten very close.
However, there is another indicator to go off of that may be telling us the bottom is near...
And that indicator is the 20 period weekly moving average.
Buying off the 20 WMA was the point of max gains during the last bull market.
Check it out:
The point of max gains...
As you will likely notice based on the chart above, buying off of the 20 WMA worked extremely well during the previous bull market.
The bull market that our current environment is most often compared to, just at the very beginning stages.
If you look at the above chart you will see that the price did actually dip below it at the very beginning of the parabolic portion of the bull market, the portion just before the first green arrow.
Which may be where we are right now in the cycle.
Another example of the same chart without the green arrows:
If we use our current distance from the most recent halving and take that same point back in 2016 during the last bull market, we would be right around that second green arrow on the far left side of the chart.
Which didn't violate the 20 MWA outside of a brief wick and yielded awesome results for those willing to buy off of it.
Almost any way you compare the charts we are likely close to a bottom at these levels...
Pretty much no matter how you dissect the above charts and compare them to where we are right now, it looks like we should be near a bottom at least based on what happened in the past.
The question then becomes, is this time different than the last time???
Thus far it hasn't really been in spite of everything else going on in the world that wasn't going on back then.
Global pandemic and massive money printing and bitcoin is acting very much like it did 3-4 years ago.
Stay informed my friends.
Posted Using LeoFinance