Crypto Chartbook: Bitcoin, Your Best Bet

BTC-USDT, Daily Chart, Sideways to up:

BTC-USDT, monthly chart as of November 30th, 2020

BTC-USDT, monthly chart as of November 30th, 2020

Zooming out to the monthly (which is the most significant time frame), one could expect that this double-top formation will reject prices from the US$20,000 zone. Wrong! A mistake often made by traders new to technical analysis is observing price patterns and price levels. The significance of how price reaches and trades at these levels is much more significant. In 2017, all-time highs rejected the price by more than 50% within the month candle. This time around we are closing the month extremely strong near the resistance zone. A sign of strength. We see a good likelihood of resistance breaking and the third leg continuing for higher levels. A relatively small range sideways bar for December is also possible. Evaluating all time frames together we find strong evidence that long-term trading/ investing strategies find low-risk entries here. A trend continuation is highly likely.

Bitcoin, your best bet:

It is hard enough to place your bets right and find an investment that goes up in price. Now you have to think one step further. Risk control on what the true intrinsic value of your payout is.

Times were buying an index future, a bond, a CD, any kind of typical low-risk investment object are over and of the past. Art, antique cars, real-estate, even precious metals start having their bag of fleas.

A new way of thinking needs to emerge and with it a principle guided approach on how to minimize risk. Bitcoin is limited in supply, established enough to carry liquidity, and owns overall characteristics for sustainability. Recent allocations by banks, hedge funds, governments, and large investors confirm Bitcoins validity. It might just be your best bet!

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Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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