I Lost $1800 in the Biggest Bitcoin Rally
The past few months were great for Bitcoin. The rally began on September on the news of PayPal’s adoption, which was followed quickly by more good news that include DBS’s secret Bitcoin project.
I was none the happier though. Having took the short position since $8000 thinking that a $10,000 bitcoin was too expensive to buy, I was pretty much in denial.
And now? I renewed my position with a $18,000 price tag.
The FOMO here is real.
Riding the wave
Given the momentum of the charts, the price is hitting a 2017 resistance of $17,600, between the $17,000 to $18,000 range.
A recent breaking of that resistance line topping at $18,500 proves buying pressures are off the 2017 highs, which could possibly give us a precursor to a parabolic upswing.
That is enough reason for me to bet bullish for Bitcoin in the short term.
Fueled by a host of good news
One does not need to look far for a slew of news on a big market mover like Bitcoin.
This signals to me that Bitcoin is cementing its place in the market. It is not difficult to imagine other banks scrambling to up their blockchain game.
The inefficiency in bitcoin market is still noticeably higher than the FX market, which is telling of the market capitalisation and upside potential.
Some even go so far as to predict a Bitcoin price of $300,000 by 2025.
Muted movement in Altcoins
Unlike the 2017 mania, the rally in Bitcoin is still in its infancy. There is massive upside momentum with little to no effect on the altcoins.
This hints at the bitcoin move being more muted than that 2017 bubble, which was riding on high emotions and FOMO sentiments. Evidently, the bitcoin owners of today seem more sophisticated and logical than the past, with less volatility and more volume in the market.
I am placing my money on the parabolic movement that may soon follow.
Of course, this decision is a risky one. Therefore I do not plan to invest more than 10% of my net worth in this asset class.
I bought in at $17,850 which the intention to hold long term (although that has been hard for me) and the mental acceptance of losing 100% of my capital.
I may or may not dip into leveraged trading for this one, perhaps until the next pull back.
Though unlikely with this much bullish momentum, a correction may be seen within the next few months.
I suggest putting oneself into a position with more holding power if one is planning to hold Bitcoin for more than a few months. Prepare to see some correction to below $11,000 of pre-September levels.
More likely though, and I am betting on it, I foresee a parabolic uptrend in the next few days.
On a side note, I will also be looking into Ripple, or XRP, which is seeing some pretty chart patterns.
I know next to nothing about altcoins, not more than a couple of YouTube videos and articles. But for Ripple, banks seem to like the digital asset built for payments.
If the appeal of bitcoin is now in mass adoption, then surely, a digital asset designed for bank transfers should see more hype? That question I would have to find out for myself.