Finally, a crypto crash is here! For those who have been waiting patiently for a buying opportunity, this is your chance.
My crypto post from Monday warned about Bitcoin’s key $43k support level. More specifically, how important it was to hold that level. Well, support didn’t hold and the price collapsed as buyers stepped away. But, this support level came from short-term daily chart.
Sometimes, we need to take a step back and look at a longer term chart. Especially when volatility blows up. This way, we get a better perspective to make wise investment decisions.
Bitcoin – Weekly Chart
Surely, you will notice that both Bitcoin and Ethereum weekly charts look identical. To emphasize, I mean sell offs that created historical buying opportunities occurred at the same time.
A quick glance at the weekly charts reveal the last big crypto buying opportunity was back in March 2020 when Covid-19 pandemic hit. Since then its been straight up!
Ethereum – Weekly Chart
Indeed, when you see a crypto crash, or PAN SELL OFF, when everything sells off together, odds are it’s a buying opportunity.
Again, a big thank you goes out to Elon Musk. Elon’s tweet last week was the catalyst for this correction. I’m beginning to believe Elon has more sway with his words than the Federal Reserve presidents, or Donald Trump.
Conclusion
In any event, the big take away today is to be patient as an investor. If you ever get that fear of missing out (FOMO), my advice is to lay down until the feeling goes away. Undeniably, Bitcoin and Ethereum along with blockchain technologies are here to stay and will shape the future of money.
The best strategy, in my humble opinion, is to accumulate on weakness.
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