SHOULD I BUY CRYPTO WHEN BITCOIN CRASHES?
Is it a good time to be buying cryptocurrency when bitcoin crashes? Now it looks like bitcoin may be, on a slight bounce were definitely seeing a few. Other cryptos have a small bounce from this point, but remember we have dropped a fair way over the last few weeks. The bitcoin top was in late november and weve since seen quite a few of the top 20 top 50 top hundred take some sizeable losses in the last seven days, let alone the last couple of months. So i want to look at the charts and specific signals that we tend to reflect on and use in our trading when it comes to buying strong horses and not so strong horses, the stuff that we want to stay away from thats the sort of stuff that We talk about in our patreon membership, which you can find a link to down below and, of course, tia premium, where we have the over seven hours. Of course, content on learning how to trade, something that ive been doing for over 10 years and also work with my brother on this, who also has been trading for over 10 years as well, in the futures markets and, of course, now cryptocurrency. So theres plenty of great reviews from our members over there as well so check out the link at the top of the description down below thats for patreon. Now one last thing is swift: decks for the aussie guys if youre looking to set yourself up with other exchanges, while the market is quiet, which means their exchanges are quiet too, check out the link for swiftx in the top of the description as well.
10. Bucks, a free bitcoin when you sign up and verify your account with them all right, so the first thing ill have a look at is the top hundred. We can see a lot of red here then were going to look at bitcoin and the fear and greed, something that weve been covering on the channel uh since may or june of this year of 2021 and looking at times to be buying cryptocurrency. Provided we have a longer term view and we have our plan intact. We have another plan there that we can follow up on in case. You need to sell at a loss or sell at a profit, because weve seen the market rise and if you dont, take your profits when the market rises, then you dont have the dry powder to be buying the cryptos that you want to buy when the market Falls – and that seems to be a pretty difficult thing to do for a lot of people, especially when the market is up and you believe the market has to go higher. So the most recent ones that we have been buying and selling is something like cro. You know this pumped to 97 cents about four or five weeks ago and has since fallen its 50 down now 46 cents and could fall a little further, but were looking at these things to be buying when the market is down and im. Looking at the market. Im, looking at the fear and greed, which is part of the plan that we had just put together in may and june, just to be at least buying crypto when the market is at its most fearful, and this is bitcoin now you need to look at it In other or across other cryptocurrencies as well, it may work for something like ethereum.
Ethereum has been around quite a long time and has a very strong base. And if you just take a quick look at all of the strong red here, so this is like the dark orange you can see that these have been pretty good times in the market to at least potentially dollar cost average. Now, of course, you could say well, why was it why didnt a dollar cost averaging at these extreme greed times its going to depend on the outlook and, of course, if you look far enough buying at these extreme times of 12, 13 14, 000 bitcoin back in 2019, if you hold it for long enough, then of course its going to go up, but if you want something to get you into the market, when others are extremely fearful, then something like a fear and greed plan can help, and this is what we have so Far now you need an exit trigger for a loss and i use gain rules and i use wyckoff rules as well. You see me talk about that on the channel. Obviously, support and resistance on the charts as well. Then i also want an exit trigger for profits. I want to be exiting these cryptos on the way up and i tend to rely a lot on ganns swing, charts for this and thats something you can learn about in tia, premium search began, swing, charts and hopefully you can find something out there. They are one of the most underrated tools in all of trading.
If you can learn how to create and draw a swing chart, especially on a weekly chart, something a bit more longer term its a really handy tool to bring into your own investment plan and start to look at your own assets at longer term. Time frames and continue to buy in on the way up so theyre, the two other triggers that you need for a plan. You need to have an exit for a loss, an exit for a profit risk management, as you can see here, were just looking to invest a thousand bucks. So this is just to give an idea of what the plan is doing. A thousand bucks every time. The fear and greed index, which you can see right here when this hits 15 or lower. Now you can adjust these settings to suit whatever you like and its something that weve covered and looked at different parameters with the members but yeah you could use, maybe something thats, 16 or under or 12 and under. But you just have to go back and have a look at that im using 15 for this plan here and the last two purchases that we did were on the 6th of january and the 8th of january 43, 400 and 41 500. when we were buying all This crypto in the low to mid 30s and the last one here was at 29 000.. At the time, the market goes up to 38 comes back down to 32, so you kind of have to get a feel for holding this longer term, its, not a short term trading strategy to be buying on momentum.
This is more of a buy the dip strategy for a longer term portfolio, so the current total of bitcoin that we have in this portfolio is at 0.4 of a btc uh, the returns at 20, the total investors 14 000 and the profit at the moment is 2. 800. now for a plan like this, where im buying cryptocurrency and holding it longer term selling it at those targets of my wd gan swings and also why cough analysis there. I want to store it on something like ledger, so ill leave a link to a hardware wallet ledger nanox in the description down below check that out. If you havent already got your hardware wallets to store your crypto, they were having some supply issues in late 2020, but i believe now its looking good. So at least the market is quiet, and these are other things to do when the market is quiet, to protect your portfolio, now, im going to look at bitcoin on the chart. The next thing i see coming up – and this is for the bearish fearful extreme fear side of the market – is the death cross, and this just has to do with the moving average so 50 day 200 day. As these moving averages converge cross one another. We get the death cross generally, it happens too late in the market or the signal is too late for any real action that needs to be taken, and then you also have the the golden cross, which is the opposite, and the market takes off from that point.
But again its sort of too late. This would thats why i look at gann and also wyckoff analysis, but i wanted to bring this one up, because i believe that well probably start to see this come up a bit more. This might scare some people that stops them from actually taking action in their plan because they believe a death cross is going to crash the market and its all going to be over from that point. But what i want to look at on the chart from the death cross on bitcoin is whats happened in the past, so the main thing im just looking at here is weve had the death cross. So this is what it looks like here. The yellow is the 50 day moving average. The blue line is the 200 day moving average, and so when it crosses when the yellow crosses under the the blue, we get the death cross when the yellow the 50 day crosses above the 200 day. We get the golden cross, which means everything is rosy and you know prices should go to the moon. Uh. It looks like were starting to head well, you know were a few days off a death cross and whats happened in the past. You know just from a quick look at 2019. 2020 is when we start to get a lot of death cross, so the yellow going under the blue golden cross death cross golden cross, its generally in a an accumulation stage.
So if you believe were seeing that now, the death cross, the golden cross potential death cross and, of course, for us to go back up again well have to get through into a golden cross again, then this could just be another massive accumulation section of the market At higher prices so that the market is adjusting to new normals new higher prices, it doesnt mean we cant go into the high 20s or 30 000 range for bitcoin, but its just a matter of getting a longer term perspective of how the markets will move, especially As they start, pricing in uh, a new normal for a higher price for bitcoin and potentially ethereum as well as we see ethereum just dropped to around 3 3100. The new normal a long time ago was 80 bucks. So this was the bear market in 2018, 1920. So, between 80 and about 300, that was what was uh looking at being the new normal. When we had the golden cross, the death cross, the golden cross, death and golden again, the market was finding its its new normal, and so, if that is uh, what whats happening right now then were looking between around 1700 and the highs of around 4 800.. So its just putting in new levels, new pricing weve talked a lot about bitcoin. A lot about eth whats going on death crosses the fearfulness of the market, but should we be buying cryptocurrencies and, of course, its going to come down to the stage of that crypto? At this point in time, so were going to say that bitcoin has crashed its at its low levels.
Should we be buying other alts and ive got matic here as an example, matic crashed into that 19th of may low, so that was the uh one of the major crashes that weve seen on bitcoin during this cycle. So thats back in this section here as the market failed to get back to its old high of 65 000 back in april. It failed in may and then crashed into the low of around 28 000.. So this took about two months at this low period. Two to two and a half months and uh, the the price came back down and tested those um high to twenty thousand dollar levels, a couple of times here or a few times now. In that period we had matic matic was testing the low, so this is matic usd that was at around 70 or 80 cents bounced back to 240 and then came all the way back down to a lower price of around 60 cents. But since then has started to climb its way out now, some would say this is still a good buy at those lower levels, but id be looking at something more like solana. So while the market was crashing, solana had its lows at 20, bucks bounced to around 40 back down to 20 36 20. before which we now know it took off to around 200, fell again to 120 and then took off finally to around 260 dollars. So this was more than a 10x in that period, whereas matic uh has only well since the 60 cent low, its basically tripled and a half thats where were currently sitting at 2.
10. So the piece of the puzzle that i often come back to is what is the crypto doing against its bitcoin value, and i want to see some solid accumulation and then the market take off, so we can see from matic btc during that same period the market Came back down and continued to test those lows of around 2100 satoshis, but it wasnt getting that take off movement, unlike solana, which is what we saw when it comes to sol btc. It was getting its tests, but then it started to break through the highs. So if we zoom in on this section, which is so far away now, you can see that the higher lows begin to form another high low and then the market takes off from those highs. Whereas we go back to matic and it was trying to put in those higher lows but kept getting rejected at our again 50 level and then fell all the way back down, we had a higher low and then it tried to take off again got rejected. At 50 percent, but then it made a new higher low here, so matic needed more time to accumulate than solana, because celina had gone through its accumulation stage and we could start to see that as the market was breaking out. Maybe the signals werent there on the usd pair, but i was looking at the signals on the bitcoin pair and then, if you want to take it one step further, maybe have a look at ethereum pair as well.
So, to recap: what im looking at here look at the usd pair look for higher lows that are forming look for breakouts. You can see here as solana as the example there is the higher low. Then you get the breakout. Weve got some good volume coming through and then also keep an eye on where the 50 levels are, because you want this mark uh the market that youre trading in to be consolidating above 50 levels. So you can see that at the moment celina btc theres our 50 level. It bounced cleanly off that 50 and has tried to shoot back to new all time highs. So this could be getting a little weak again. It tried it in october, but it looks like we might be getting weak, weve fallen under our 50 percent of the downrange and then also some of these lows that are coming in at around three hundred and ten thousand satoshis. So keep a look out for that. On your cryptocurrencies that you are looking to accumulate when the market is down, if youre interested to learn more, go and check out the link to the patreon link down below. So this is the investor accelerator. Lite youve also got premium, which has the whole trading course. There uh so check this out, get yourself 16 off two months for free.