[2019-01-15]Bearish Bitcoin (BTC) Outlook after Latest Consolidation

[Vladdirescu87]

Even though last week began with the Bitcoin price consolidating, the utmost result was price action hitting a drastic week. The price made a high of almost $4,112 on January 8, 2018, before collapsing more than 10 percent for the week, according to data from Tradingview.com.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/bearish-bitcoin-btc-outlook-after-latest-consolidation/

[btyco]

Lots of support at $3500 which has yet to be tested so the range is still around 3600 - 3700 at the moment. No one knows which way it will break, could be here for a while

[1Referee]

Lots of support at $3500 which has yet to be tested so the range is still around 3600 - 3700 at the moment. No one knows which way it will break, could be here for a while

The support around the $3500 level dates back from 2017, so yeah, bots jump in to scoop up some coins whenever they get the opportunity to do so. It wouldn't surprise me if we end up replicating what happened in 2015 after the sub $200 bottom was in. It took like 10-11 months to break the $300 level, and it annoyed the crap out of people with how 'boring' the market was for them.

These are very good times to average into the market over a longer period of time without having to worry about the price go up much. Anyone with +$10,000 priced coins should do the same as it will help to significantly decrease break-even points. Much better than waiting like a frustrated zombie for the price to reach $10,000 again. It's just a matter of logical thinking.

[deisik]

These are very good times to average into the market over a longer period of time without having to worry about the price go up much. Anyone with +$10,000 priced coins should do the same as it will help to significantly decrease break-even points. Much better than waiting like a frustrated zombie for the price to reach $10,000 again. It's just a matter of logical thinking

What do you mean here by averaging into the market?

As you can average down and average up. Averaging down refers to buying more of what you already have when the price goes down, while averaging up means buying more when the price goes up. Though I agree that you don't have to care too much about the price going up as no matter how exactly you are averaging into the market, you should more care about the price going down since in the latter case your losses will be multiplied even if your break-even point goes lower (in the case of averaging down). And that should be your primary concern in the downtrend market, not the break-even point (as you have already missed it)

[1Referee]

What do you mean here by averaging into the market?

As you can average down and average up. Averaging down refers to buying more of what you already have when the price goes down, while averaging up means buying more when the price goes up. Though I agree that you don't have to care too much about the price going up as no matter how exactly you are averaging into the market, you should more care about the price going down since in the latter case your losses will be multiplied even if your break-even point goes lower (in the case of averaging down). And that should be your primary concern in the downtrend market, not the break-even point (as you have already missed it)

What do you think I mean? Read the post. We have been going down for over a year, so I am obviously referring to averaging on the way down. In this case it matters a lot what the break-even point is, especially with how people here only pay attention to how fast they can make profits.

It doesn't matter how much lower the price keeps going as long as you have enough fiat ready to put into action, and there is no way to know beforehand if the price will actually keep going down, because at one point the bottom is in and we will be going up again. That how investing in stocks or any other asset works as well. You buy into it with whatever percentage of your balance, and have the rest aside in case the price takes a dip.

[deisik]

What do you mean here by averaging into the market?

As you can average down and average up. Averaging down refers to buying more of what you already have when the price goes down, while averaging up means buying more when the price goes up. Though I agree that you don't have to care too much about the price going up as no matter how exactly you are averaging into the market, you should more care about the price going down since in the latter case your losses will be multiplied even if your break-even point goes lower (in the case of averaging down). And that should be your primary concern in the downtrend market, not the break-even point (as you have already missed it)

What do you think I mean? Read the post. We have been going down for over a year, so I am obviously referring to averaging on the way down. In this case it matters a lot what the break-even point is, especially with how people here only pay attention to how fast they can make profits

Okay then

It doesn't matter how much lower the price keeps going as long as you have enough fiat ready to put into action, and there is no way to know beforehand if the price will actually keep going down, because at one point the bottom is in and we will be going up again. That how investing in stocks or any other asset works as well. You buy into it with whatever percentage of your balance, and have the rest aside in case the price takes a dip

That's what I wanted to address

Actually, I don't need to say anything (as you won't believe me anyway). I will just repeat what John Keynes once said (presumably after losing a fortune in bad investments). He said that the markets could stay irrational longer than you could stay solvent. And that's specifically about what you are suggesting to do, i.e. adding to a losing position (or averaging down as they metaphorically or euphemistically call it)

You don't know how low the price will go, you can't even be 100% certain that it won't stop at 0. In simple terms, what you suggest is a straight path to disaster, a highway of sorts. And whether you turn out right or wrong this time is ultimately irrelevant because it is still a one-way street that will lead you to losing your money in the end. But you are on your own here, of course, I just want others to know the possible consequences of such actions