It’s gonna be hard not patting myself on the back too much in this post!
Turns out my previous predictions on crypto were right. Bitcoin dipped to $5,800 or so, then shot back up to around $6,800. Fortunately I put my money where my mouth was, so I ended up making some coin from that prediction.
With good timing, it was easily possible to make a 10 or 15% return within a week. That’s excellent. Try to get that from a bank or CD in a year, trust me it won’t be easy.
If you get good at cryptocurrency trading, 10% gains in a period of a few days to a week become a regular thing. It’s an extremely effective tool to build wealth. Even if you only have a few hundred dollars there are methods to start building wealth in the crypto sector today. I might end up writing a guide on that topic if there’s sufficient interest.
Onto the next pertinent question: Where do I think bitcoin is heading?
For now, we are definitely still in a bearish market. While bitcoin did rebound from the $5,800 support point, it only went to $6,800. It then reversed yet again down to its present price of $6,379. It didn’t break through the key resistance point at $6,800 or $7,300. Breaking through the $7,300 point would have indicated a possible trend reversal to the bullish side.
The $5,800-$6,000 will likely get tested again. If bitcoin breaks below $5,700 watch out. Bitcoin could fall to lows not seen since 2017 in the $3,000-$4,000 range. If bitcoin breaks below $5,700 I’m definitely doing research on the best way to short it, haha.
Ultimately though numerous other investors and I are bullish on the price of bitcoin, believing it will hit around $20,000 by the end of 2018.
Given that, one strategy that’s definitely viable is layering in buys, gradually accumulating bitcoin with the hopes that it’ll hit $20k within the next 6 months to a year.
Additionally, when locking in profits from bitcoin trading, you can opt to keep a certain percentage of the profit as bitcoin. For an easy example, when bitcoin hit $6,800 after I bought it at $6,000, you could sell $6,400 worth, taking $400 profit in cash, and keeping $400 in bitcoin.
If bitcoin falls again to $6,000, which is likely in our current bear market, you can re-purchase it. You’ll now have about 1.05 bitcoin instead of 1. Over time, you can build up a lot of bitcoin doing this if you’re an active trader. Alternatively you could wait if you strongly believe bitcoin will hit $3 or $4k, then buy 2 bitcoins with the same money.
Something to consider is that the current bearish trend has been going on for over 6 months, so it’s safe to assume it won’t reverse tomorrow.
Given that, it may be logically smarter to wait for $3 or $4k bitcoin rather than re-buy at $6k and risk it dropping to $3k. Making such decisions requires experience and analysis of bitcoin’s chart at the time you’re debating a purchase decision.
My advice for now is as follows:
Don’t make any trades and wait. Bitcoin is likely going to test the $5,800 support point sometime soon.
When it does, the question becomes whether to invest there or wait for the potential break below it. That’s where technical analysis comes in, that question can’t be answered until the chart’s available at that point.
So far I’m 1 for 1 on my predictions for bitcoin on blockchaindecrypted.com. A 100% track record, not too shabby haha. Keep dodging those bears, crypto traders!
Will Salisbury is the co-founder of Blockchain Decrypted and full-time cryptocurrency trader. He also hosts the Blockchain Decrypted podcast, and when he's not talking or writing about blockchain technology and cryptos, he likes to play games and relax in his home state of Michigan.
Ethereum, Bitcoin & the Future of Crypto with Peter McCormack: Ep 06
Bitcoin: Past, Present & Future
Bitcoin Skyrockets Above $5000, Return of Bull Market?
Coinbase Adds New Trading Fee Structure, Hurts Most Users
Bitcoin Cash Hash War Largely Over, Market Update