Crypto Talk with Terence Bitcoin (BTCUSD) CRYPTO:BTC BUY Mar 04, 2022

CRYPTO UPDATE

The triangle we spotted on Bitcoin was very effective and broke its resistance with a nice candlestick that made it take almost 6% in one day.

The take profit target is still located at $56,000, close to an important supply area (many sell orders pending in the order book). The price is currently operating a pull back on the resistance zone it broke recently, this is perfectly normal and occurs in about 60% of cases (Chartist analysis, by Francois Barron), this could also be a very good entry for investors who missed the low of the triangle and its breakout (we can also wait for the breakout of the last high.

Investors who took position at the low or middle of the triangle currently have a nice profit (+20-10% at the time of writing, +30-20% at the high), and can expect much more, if the pattern materializes until the end. The most sensitive (and they are right) to money management have already moved their stop loss beyond their entry point, and can no longer, regardless of future developments, lose money.

It is interesting to note the high correlation between Bitcoin and other cryptos. Indeed, since the break of the triangle on Bitcoin, the main other cryptos have all experienced interesting gains this week, including Ethereum (which also broke a triangle from above), and Solana (+60% for a week). The case of Solana is very interesting because we had two chartist figures, a triangle and a triple bottom that led to this rise of 60% in 1 week and 80% since March 11.

Although probabilistic, chartist analysis remains an extremely powerful tool to evolve with more confidence in the chaotic financial markets, no matter what the detractors say, provided of course to retain this elementary but crucial rule that is missing to 90% of investors, and allowing to extend its life (in the financial markets) on the long term: to have a perfect control of its money management.

Because of the ETFs, this will become scarce and so will go higher.

Doesn't see a use case for Bitcoin, but expects this to keep rising based on supply and demand. It's up 11% this week.

He pared some yesterday, as it had grown to a 6% position, making him very uncomfortable. Now he's at 2.5%. Didn't sell all, because seasonality starts early February, so you could take a small position now.  Will be volatile, susceptible to 5-10% swings. Has long-term applications.

His only speculative holding. Fidelity, Blackrock and other funds companies are rushing to market their crypto instruments, so he's still buying. Would not sell if it slid 15%, but would hold.

The momentum is gone now, but it has before. Bitcoin is very volatile, lacking fundamentals, so it trades purely on emotion.

It's had such a strong rally. By nature, this is volatile, so the sell-off is the price of admission.

It trades like a future contract, and momentum is the most significant indicator. It's volatile.