Bullish trap_What the lesson?

[IjawMan]

What is the lesson?

The lesson there is that there isn't a perfect time to buy. Anytime you got your discretionary funds on ground is just the best time to enter the market. Moreover, we never can tell what the next bitcoin move is. Therefore taking advantage of the dca method is just the way out as an investor . Again, today bitcoin price is now $80k and tomorrow we never can't tell. Many people that has kept on waiting for the dip before buying, most of them later end up not buying at all. So what I'm saying in essence is that, as an investor that actually knows what he's doing, the situation of the market shouldn't be a barrier to you in accumulating Bitcoin otherwise you will end up being a no coiner.

Timing a volatile market is another risk on its own for investors who believe they can target the price of Bitcoin to dump at a certain price before buying. And this hits badly on those investors that buys in lump-sum at a specific price only to have price dump deeper. DCA may not absolutely prevent losses but it helps minimise losses for an investor particularly when he is dca-ing for a long length of time.

[DPHOR]

What is the lesson?

The lesson there is that there isn't a perfect time to buy. Anytime you got your discretionary funds on ground is just the best time to enter the market. Moreover, we never can tell what the next bitcoin move is. Therefore taking advantage of the dca method is just the way out as an investor . Again, today bitcoin price is now $80k and tomorrow we never can't tell. Many people that has kept on waiting for the dip before buying, most of them later end up not buying at all. So what I'm saying in essence is that, as an investor that actually knows what he's doing, the situation of the market shouldn't be a barrier to you in accumulating Bitcoin otherwise you will end up being a no coiner.

Timing a volatile market is another risk on its own for investors who believe they can target the price of Bitcoin to dump at a certain price before buying. And this hits badly on those investors that buys in lump-sum at a specific price only to have price dump deeper. DCA may not absolutely prevent losses but it helps minimise losses for an investor particularly when he is dca-ing for a long length of time.

You know what most people usually and always think about is using the DCA to make investment, of course that is absolutely the best way but that doesn't mean that people wouldn't lose while trying to follow the DCa approach to make investment. The thing is, as an investor, you must at least planned to accept every risk that is associated to invest before venturing into the investment as most times things can actually go South because not at all time investment would be that profitable. Of course holding for long term boost and increase the rate at which people would be profitable from their investments.

[Churchillvv]

If one is truly interested in buying or investing they would have started already except they don’t have the capital to start but however is excuse has to be the reason someone didn’t buy then they are not really interested enough because I still know that from when bitcoin started years back I am buying late already even though I will be making profit but that can be compared to what I would have made long before hand. So bull trap is just a concept that people used to gaslight themselves and never do what they desire.

[jossiel]

The biggest lesson is to never wait but do your own accumulation and that's through the DCA.

I think it's said enough by everyone that it's the best and common strategy for those who has price targets.

Because the more you wait, the more frustrated you can get with that. And that's why for everyone who hasn't bought at the right time which they believe will come, move along and do your actions and decide already that any price can be a big gap when bitcoin moves upward.

[Asiska02]

Timing a volatile market is another risk on its own for investors who believe they can target the price of Bitcoin to dump at a certain price before buying. And this hits badly on those investors that buys in lump-sum at a specific price only to have price dump deeper. DCA may not absolutely prevent losses but it helps minimise losses for an investor particularly when he is dca-ing for a long length of time.

DCA helps one to get to buy bitcoin averagely. You will not be buying at the highest price and also your price per bitcoin holding won’t be that of the lowest price. Timing the market is a bit complicated and many people are just saying to do it to have a means of excusing themselves when they don’t get to invest at the lowest price they want the market to reach before buying. Bitcoin is a volatile market and when you want to time the market to make the smarter move investment, it may also be waiting to make its smart move on you into not taking you along. Invest when you can and when you can invest using DCA, don’t hesitate to keep it consistent to reach greater heights in your investment.

[STT]

Bull trap would be a sudden reversal where the highs are merely preceding a new low.  This outcome now is unlikely to occur imo.   The reason why you can tell is the structure of Bitcoin movement now is a retracement of prior strength and its not a weak echo but a full almost 100% return to the May peak in Bitcoin.

  We remain in between 78% and 100% Fibonacci retracement since the last last week of August, its definitely qualifying as hesitation but its not fake as such.   The market so rarely moves in one direction only that this is when we actually should far more often expect failure; when price only trades in this singularly and overly simplistic way is where its more likely false, incorrect and liable to failure.

[#CapsLOck]

I believe the more important point is that no one can be certain in the moment if a breakout is actual or a bull trap. It is very easy to say after the price drops that it is a trap. But it is much more difficult when you make that judgement in advance. That is why it's essential to have a predetermined strategy, rather than attempting to classify all price moves. With a long term plan. You can continue to add to the plan, and with a trader, you should have invalidation points and risk limits. The error is not being cautious  it is altering the strategy when the market goes in the other direction.

[Cossyblack]

You know what most people usually and always think about is using the DCA to make investment, of course that is absolutely the best way but that doesn't mean that people wouldn't lose while trying to follow the DCa approach to make investment. The thing is, as an investor, you must at least planned to accept every risk that is associated to invest before venturing into the investment as most times things can actually go South because not at all time investment would be that profitable. Of course holding for long term boost and increase the rate at which people would be profitable from their investments.

The reason why most investors prefer to accumulate bitcoin with the dca strategy is because dca is more convenient than the other strategies,however despite the fact that dca is more convenient for accumulating bitcoin doesn't mean that your investment is risky free..the fact that you are using the DCA to accumulate bitcoin doesn't mean that you can't tamper with your bitcoin investment,real life emergencies can forced you to sell your bitcoin if you don't have strong backup funds,this is why you need to build your emergency fund so that if real life emergency occur,you will not have to tamper with your investment to take care it.

[obuoma]

I believe the more important point is that no one can be certain in the moment if a breakout is actual or a bull trap. It is very easy to say after the price drops that it is a trap. But it is much more difficult when you make that judgement in advance. That is why it's essential to have a predetermined strategy, rather than attempting to classify all price moves. With a long term plan. You can continue to add to the plan, and with a trader, you should have invalidation points and risk limits. The error is not being cautious  it is altering the strategy when the market goes in the other direction.

By both structure and characteristics, what we have in the market is not bull trap at least fir now unless something changes in the future which is possible. Assuming the move was a bull trap, by now price would have crashed so hard before people who went long would be able to take profits. Price hitting $82k followed by a retracememt and now the recovery we are seeing now shows that price is poised to go higher.

This month will give a clearer picture of where price is going for the rest of the year. At the current level, there is some sort of indecision in the market but as the month draws closer to ending, market will likely show the preferred dominant direction.

[EarnOnVictor]

What is the lesson?

The lesson is for them to wake up. You see, many people are just dealing with Bitcoin, but a tiny few truly understand the asset and the games around it. If you FOMO or act based on FUD, etc, without having the substantial reason(s) for your actions, then you are wrong.

Specifically about the latest events, two important reasons are enough for those who knows what they are doing: 1. US debt payback that was announced double. That's huge, and QE has always been a catalyst for risk-on assets like Bitcoin.
2. The long-term breakout across many sensitive strategies confirmed it. Mine was the EMA50/Monthly chart, amongst many others. These were undoubtedly comforting, especially when Bitcoin sliced above 67,000$. What am I waiting for? Even if it's temporary, I knew about $15,000 movement was due, and that's exactly what happened.

[alastantiger]

The biggest lesson is to never wait but do your own accumulation and that's through the DCA.
I think it's said enough by everyone that it's the best and common strategy for those who has price targets.
Because the more you wait, the more frustrated you can get with that. And that's why for everyone who hasn't bought at the right time which they believe will come, move along and do your actions and decide already that any price can be a big gap when bitcoin moves upward.

I agree with you  because the biggest lesson you can learn from bull trap is not to fomo to buy Bitcoins when the market is high but use DCA because that is the only way you can avoid panicking to buy because the market is pumping and looking very active but If you already have a DCA investing strategy then it helps you to stay focus and not get distracted by what is happening in the market.

Many investors are always deceive hy bear trap or bull traps without knowing because they are not careful, they can lose their money to the market very quickly hence they do not have to  be in a rush to invest because the market is pumping or you will be held in a bull trap. To avoid losing money, watch others how they are investing and ir it will work out well for you then you can join them and be investing in that way.

[LUCKMCFLY]

This month will give a clearer picture of where price is going for the rest of the year. At the current level, there is some sort of indecision in the market but as the month draws closer to ending, market will likely show the preferred dominant direction.

Why do you say that? I'm still not sure. The recent rally is largely due to Donald Trump making some important statements, which gave absolute confidence to many undecided investors, and that helped boost the price a lot.

I wouldn't call it a bull trap yet, because I don't consider it the right term. A lot has happened in the world lately, including wars and geopolitical issues that really affect the price due to the panic many people are feeling. It's normal; all these events do have a profound impact on the market. For now, I'm just taking a wait-and-see approach, but if you ask me, I think BTC will go up.

[Jewan420]

I wouldn't call it a bull trap yet, because I don't consider it the right term. A lot has happened in the world lately, including wars and geopolitical issues that really affect the price due to the panic many people are feeling. It's normal; all these events do have a profound impact on the market. For now, I'm just taking a wait-and-see approach, but if you ask me, I think BTC will go up.

Bitcoin is moving at its own pace, we haven't seen any significant events in September yet. A few small movements that seem to be stable. We haven't found a reason to call the current market a bulltrap yet, so we should ignore the term for now.

I'm not sure what surprises the market will show us in September, or even if there will be any surprises at all. For now, it looks like September will end with small movements, maybe a small pump that will be limited to $85k.

[BluebloodCXVI]

Perhaps folks should focus on having a strategy instead of obsessing about market price.

If you’re one that is ready to buy Bitcoin for the long term, then just figure out what amount you can comfortably allocate and accept the possibility that you may never get the exact price you’re waiting for when you expect.

A dip can be an opportunity when it shows up, but it’s not something that you should assume is guaranteed.

Also you are not mandated to put in all your money into bitcoin at once.

In an instance where a person is worried about buying before a potential dip, they could buy part of their intended allocation and keep the rest for when the prices dip.
This way, even if the market falls, they would still have something to hold their shit together; and if it doesn’t, they still won’t be completely left behind.

[coinrifft]

Perhaps folks should focus on having a strategy instead of obsessing about market price.

If you’re one that is ready to buy Bitcoin for the long term, then just figure out what amount you can comfortably allocate and accept the possibility that you may never get the exact price you’re waiting for when you expect.

A dip can be an opportunity when it shows up, but it’s not something that you should assume is guaranteed.

Also you are not mandated to put in all your money into bitcoin at once.

In an instance where a person is worried about buying before a potential dip, they could buy part of their intended allocation and keep the rest for when the prices dip.
This way, even if the market falls, they would still have something to hold their shit together; and if it doesn’t, they still won’t be completely left behind.

Right, but there are investors who can't really keep their eyes and always wanted to check them like every hour or two and see where portfolio is.

For me though, I'm not of a big investor, I just put money that I can afford, and although I do DCA, it's not that consistent unlike others maybe putting away some money from their paycheck.

But it's good advice, just look at the bigger picture so that we won't be affected by short term price increase or decrease. And we shouldn't panic and learn how to control our emotions.

[Awaklara]

Right, but there are investors who can't really keep their eyes and always wanted to check them like every hour or two and see where portfolio is.

Is that a beginner investor? No need to worry about that. When they panic and sell, whether at a loss or a profit, they will definitely learn from the investments they made. After that, it's up to them whether they want to continue investing with the same mindset or improve their investment plan and mindset. 
If you have already planned for long-term investing, your knowledge and mindset should also be prepared.

[danherbias07]

This is the problem when we wait too long and think that it will fall more.

You say they are not doubting Bitcoin, and yet they have an asking price for where they should buy. I think that is also considered doubt because they are requiring something before they buy. I know it's because they want to maximize profits. But the real believer in Bitcoin would not care what the price is. Accumulating more Bitcoin is their goal, and they won't even hesitate to buy even if you ask them to do it now.

The lesson is to never get greedy with profits. If you are a trader, take what you can get at a lower price from your last sell or buy. But do not wait too long because it can jump so fast, and it could happen while we are sleeping.

[decodx]

Right, but there are investors who can't really keep their eyes and always wanted to check them like every hour or two and see where portfolio is.
<...>

Let's not kid ourselves, we all check our charts more than we should. Sitting on your hands is probably the hardest part of investing.

But checking the price every hour doesn't change the price. It just stresses you out and makes you want to panic sell or buy at the wrong time. If you can't stop staring at your portfolio, your position size is probably too big for your risk tolerance.

[Out of mind]

This is the problem when we wait too long and think that it will fall more.

You say they are not doubting Bitcoin, and yet they have an asking price for where they should buy. I think that is also considered doubt because they are requiring something before they buy. I know it's because they want to maximize profits. But the real believer in Bitcoin would not care what the price is. Accumulating more Bitcoin is their goal, and they won't even hesitate to buy even if you ask them to do it now.

The lesson is to never get greedy with profits. If you are a trader, take what you can get at a lower price from your last sell or buy. But do not wait too long because it can jump so fast, and it could happen while we are sleeping.

If you are merely waiting for the perfect moment to trade for maximum profit, time may slip away while you still lack the necessary experience and insight into Bitcoin. Instead, it is better to simply buy and hold Bitcoin rather than waiting for a price drop; you can be confident that this approach will yield good returns. Hoping for maximum profit is a mistake, as Bitcoin has no upper limit it constantly breaks old records to set new ones. Therefore, unless you are an experienced trader, you should abandon dreams of becoming a millionaire overnight. In that case, buying and holding Bitcoin can pave the way for a bright financial future.

[Barikui1]

What is the lesson?

Their is no lesson about this because people will always say or do what ever they pleases. Buying Bitcoin at a specific price should never be a problem to any true Bitcoin investor because he is only targeting long term, because he knows that Bitcoin price now is nowhere near it peak price, so this price that may seems like it's expensive may be like a bargain in few years time from now, so why would such person worried about this short term price fluctuation?

I believe that it's only traders or those that disguised as an investor, but are actually traders that buys and sell for minimal gains will be disturbed by the sudden upward movement of Bitcoin because they have not bought at their target price yet.