The following is my suggestion for anyone new to the crypto space and my take on the current state of the bull market.
This is Just a suggestion but for anyone new thinking about investing in bitcoin or even altcoins I would strongly suggest, (if you don't already know) that you learn how to read a price chart. I realize this takes time but for most people there involvement with cryptocurrencies will be a long term affair so learning to read charts will give you a huge advantage. Even if you just learn the basics, candles, support - resistance, etc. Otherwise it is like flying blind, you will be just guessing where to buy and where to sell. If your strategy is to dollar cost average, which I strongly recommend for anyone but especially new investors then the ability to read a chart isn't as important but I would still highly recommend it.
My best recommendation for anyone wanting to learn to read charts is to visit the Real Life Trading website https://www.reallifetrading.com There is a ton of free educational videos on there website, many of them will help you learn to read charts. They have a great online community and I can't recommend them strongly enough.
Another way that being able to read a chart helps is that it will give you the ability to study the past history of bitcoin to get a better understanding of how price has behaved in past bull markets. For the most part bitcoin dictates the direction of the crypto market, especially to the downside. Of course there are exceptions but for the most part when bitcoin is in a correction most altcoins will follow.
Not that history has to always repeat but if you study the past bull market you will see that in the 2017 bull market bitcoin had six corrections ranging anywhere from 30% to a little over 40%. These corrections pulled bitcoin down to and below the weekly 21 EMA, however there was never a weekly close below the 21 EMA.
There are times when bitcoin will surge higher and become very extended above the moving averages. When this happens bitcoin needs to cool off and either consolidate (move sideways) or enter a correction phase where the price pulls back allowing a reset near the moving averages.
My point with all of this is just to say that bitcoin is very volatile and goes through violent corrections from time to time even in a bull market. It is easy for someone new to the space to panic thinking that bitcoin or the whole market is crashing and not coming back (Peter Schiff).
The reality of this current bull market is that bitcoin has been on an incredible run since eclipsing the 2017 all time high. Bitcoin has not even closed below the weekly 21 EMA since the middle of April and the last time bitcoin even touched it was Sept. 7th. To further illustrate how strong bitcoin has been it has not even closed below the weekly 7 EMA since the week of Sept. 28th.
So what I am saying is that this has been an incredible run and to not panic when bitcoin needs to take a rest or pull back to reset. As I write this bitcoin is in the middle of a correction and has so far pull back about 23%. How deep this correction will go is unknown at this time, bitcoin has not even touched the weekly 7 EMA yet so as far as corrections go it is still pretty mild.
In my opinion this is all very healthy and leads to a more sustainable bull market. I still believe at some point we will have corrections that will pull back all the way to the weekly 21 EMA just as in the past. I would still consider this healthy as long as we do not start getting weekly closes below the 21 EMA. If this happens then I would consider that an important change of behavior and have to reassess my position in this market.
That's all I have for now so take care and I hope you are all staying safe.
BigskyCrypto
info@bigskycrypto.com