Bitcoin lost almost 1,700 USD on Tuesday in the peak at exactly 8,000 USD (Bitstamp) at the daily low. The big Altcoins fared even worse. Bitcoin Cash was down 25% in the peak. With such numbers one can certainly speak of a proper crash day. And this crash may not have reached its end yet.
I think the readers of this blog were well prepared for this. For weeks we have been tracking the formation of the triangle and also the Bitcoin zick zack course of Bitcoin within this triangle. It was clear that there would be an burst in the corner of this triangle in September. Open was only the question, whether up or down. From the chart technique, an outbreak down was more likely. Personally, I was rather bullish in my last two blog posts. But in the end, prepared for both ways. I am now looking forward to cheap purchase prices for my 7 coins should they continue to fall.
A look at the logarithmic 1-day chart of Bitcoin (Bitstamp on TradingView) shows the crash outlined above. On Monday, the triangle was traversed from top to bottom and on Tuesday was the break out of the triangle with a high trade volumet. This comes first again the yellow-backed channel into play. If the Bitcoin continues to fall, then the bottom edge of the channel near the top dashed black line is a possible first target. Well, that’s why we’ve been running the black dashed line in the charts for months, and it’s been talked about often enough in the context of a crash. This also applies to the dashed blue line at 6,000 USD (Bitstamp) and the bottom dashed black line at 5,000 USD, which could then be the next targets on a way down. But it is not yet time.
When Bitcoin was trading at around 8,400 USD yesterday, I’ve invested a further 3% of my capital in long positions on my 7 coins. And exactly in such units of 3% to 5% of mine, I will buy more long positions if the coin market continues to fall. And, as described above, it can certainly go much lower. But I’m still in cash with 62%. Using this phase of lowering prices to build a buy-and-hold account for the next big climb was and still is the plan. However, the price decline in one´s depot must be able to withstand mentally. However, if one invests in Cryptos, he should be aware of this. So if you look at the market, you do it with a crying and a laughing eye.
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