Should You Buy The Dip in Bitcoin? How To Trade Omicron - Crypto Breakdown November 29, 2021

Episode Summary

Today On Crypto Breakdown Joe Dewitt looks at Bitcoin, Ethereum and Dogecoin amid the Omicron scare.

He also looks at price action and volume for Omicron coin.

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Joe Dewitt Follow at: https://twitter.com/metabitz

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Unedited Transcript:

happy Monday, everyone. I hope you all had a wonderful Thanksgiving week. My name is Joe Dewitt, and this is the crypto breakdown. So over the holiday week, Bitcoin continued to.

 We had a nice red candle stick on the 26th and the last three days have been somewhat green volume coming in and the upwards direction, which is a great sign for Bitcoin here. We were previously falling down to that target of around 45,000, which was a pretty low zone, which would probably scare a lot of.

Here with this little reversal, we are heading back up towards that 58,000, the coin price currently up 6% on the day. The best case for Bitcoin here would be to get a little bit of volume and push above that 58,000 level resistance, which was previously support, flipping that resistance as support, and then continuing to upwards trend to that.

64,000 level of resistance would be ideal. If Bitcoin gets rejected from this 58,000 and will continue to fall down to that 45,000 level of support, taking a look over. Theory Ethereum looks surprisingly really good. It is up 7% on the day bouncing between its zone of 40 403,900, which it has been back and forth between for the last two weeks of Ethereum price never fell below.

It had a very, very small. And quickly was bought right back up and moving up towards that 4,400 Ethereum does look like it is ready to just claim that resistance level and flip that and support flipping that as support would put us in territory of new all-time highs, which would be very exciting for Ethereum taking a look at the RSI, which is the relative strength in that.

Does indicate that there is a little bit of overselling on Ethereum, which means that eventually people are going to come in and buy because the price is becoming oversold. Ethereum can keep up this momentum and stay above the 50 day, moving average and claim this level of resistance. I think it'll gain the momentum.

It needs to push for all time. For some reason, if it gets rejected, I could imagine us bouncing between this exact zone because we haven't left it in quite some time. So it is hard to imagine us falling below, also with the London hard fork and the EIP 15 1,559 mechanism with the burning Mack that was burned over I think one minute.

Ethereum with the London hard fork and that deflationary mechanism to decrease the supply. I think the price of Ethereum will be growing over the next month. They can look at doge coin. Doge coin is doing the best of them all today, up 10 and a half percent. This morning, those coin was not looking the best for a while.

It was falling below that 50 day and 200 day moving. Heading down to its target of about 15 cents. Although it did get quite low reaching about 40% on that relative strength index, which indicated a strong oversold territory, which did cause a little bit of buying pressure here. So we have a nice green candlestick for dose coin today, price currently sitting at about 22 cents.

And it does, and look here like those coin could hit a reversal up towards its 25 cent area. In order for that to happen, it's going to need to hop above that 50 day, moving average gain that as. And then push towards that 200 day at about 28 cents now, depending on Bitcoin. And if, if Bitcoin price does it's little fake out here and it gets denied from that 58,000, a dose coin will continue to fall to that 15 cents, just as all coins.

 Stereotypically tend to fall. Probably section of Bitcoin. So if Bitcoin's fundamentals do stay strong and it does clear that 58,000 and move in the upwards direction, it's very hard to imagine. Dose coin, continuing to fall down. Best case for doge coin would be clearing this 200 day moving average at about 28 cents and making its way up towards its current resistance zone of 35 cents here and today, guys, I'm going to talk about the new and popular coin Omicron which was a play off the new COVID-19 variant and how.

So Omicron would fall under the category. For me personally, as a meme coin, it is a coin that was developed as something popular is growing in the real world. And to capitalize on that without necessarily having any really strong utility at the moment, it saw an all-time high of about $712 and is currently sitting at 369.

So it had a very, very large selloff. Indicating that it had a very hard hype cycle, which drove price up. It rose over 900% in a day. So with a coin like this, it is really important to look at when a momentum is coming in. Something like Omicron, you do not want to be trading when there's no volume.

If there are variable. Transactions coming in. It is not the best time to be trading because the best time to make money is when volume is coming in. So you'll want to wait for what is called a squeeze, which is when price is fluctuating due to the increase in people trading the asset. And that could be done by going on trading view, which is one of the world's most popular technical analysis websites.

And you can pull up the squeeze momentum indicator as well as a relative strength index. And it take a look at price. It's good to look at price in general and the direction that it's heading, but taking into account. These indicators really helps because Alma Cron it is a hype coin, so it could easily from here start losing momentum as it could have seen its pump already.

And with coins like these, you don't want to invest more than you were willing to lose because it is very skeptical asset. Now on the other hand assets like Bitcoin and Ethereum that are strong fundamentally and have a lot of. Trading those assets are a little different because they have a history of fundamentals and a history of utility.

So although it is important to trade with volume because volume on any asset helps move the price of Ethereum and Bitcoin can be accumulated over periods of time. And what I mean by that is buying 20 $50 of Bitcoin every week would be much better than waiting for the dips of these types of. But I like to tell people is time in the market, beats timing the market.

If you're going to wait every week, every month, every day for Bitcoin to drop below a certain price that you want to buy at chances are, it will never happen. I can tell you firsthand experience from many years of doing this. When you have a price target in mind, where you want to buy, it will hardly ever get there with very strong fundamentally assets.

Like these. You want to be accumulating over a long period of time, which will help produce the best. Don't think about necessarily where the price has, where the price is at this moment. I'm sure it is important, but if you were looking for long-term gains it is important to just accumulate over time.

That's all the time we have today. Guys. Thank you so much for tuning in, and I hope you all have a wonderful week. Make sure to follow and subscribe to our podcast and you can follow me on. Which will all be in the description below you guys have a great week