This Is The One Thing You Should NOT Do When Trading This Dip In Bitcoin - Crypto Breakdown December 7, 2021

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Episode Summary

Why Time in the markets beats timing the market.

What is dollar cost averaging?

On this episode of The Crypto Breakdown, host Joe Dewitt talks about how to apply the old saying Buy The Rumor Sell The News to crypto assets.

Why Ethereum is more BULLISH than Bitcoin

The end of Dogecoin as we know it?

Questions? Ask at [email protected] and we will answer!

Hosts:

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

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

Unedited Transcript:

Happy Tuesday. My name is Joe Dewitt and this is the crypto breakdown. It has been a long weekend for Bitcoin. and for the following altcoins, everyone, I'm sure we are well aware.

Let's get right into it. Taking a look over at Bitcoin fell to that 44,000 support that we mentioned in previous episodes. I've been talking about that 58,000 support on that Bitcoin was trading just below. It was weaving between for about a week here. And it's struggled to claim that 58,000.

Again, it tested about three times on three different days, struggling to get above that crucial 58,000 level of results. Was a very bear sign here, which caused price to fall fell down pretty much to that. 42,000 a level of support here and quickly got bought up. And just the same day currently sitting at 50,000 Bitcoin is up 6% on the day and it looks like we're up trending in the right direction here.

I will say, be careful of that 200 day moving average as price could continue to fall here. Ideally, since it did test. Port, we will be moving in the upwards direction. Although with a drop like this, you never be too sure. And there is also the possibility of continuing to fall back to that 44 for an ultimate retest, taking a look over at a theorem.

Ethereum is up 8% on the day. Now Ethereum actually looks  really bullish here. Buyers are controlling the market. Essentially. This is a bullish market. People tried to dump off their Ethereum. Just quickly bought up this resistance here at 4,300 will be very crucial depending on what it does today or tomorrow.

Getting above this resistance would be a very bullish confirmation and we will be pushing towards all time highs about that 4,800 failing to push above this. The resistance level would be ultimately a little bit bearish and would continue to correct down towards that 3,500 now doge coin. I don't say I love to see it, but this is exactly what I've been mentioning for about a week.

Now. We were struggling to get above that 50 day and 200 day moving average. We got wedged between for about two weeks here, bouncing between the two and the second that we dropped below both of the 50 day and 200 day moving average. I said, Thursday that we were going to drop down to that 15 cent mark for the bear stance.

We're going to fall down to that 15% mark. And that is exactly where we fell and held the support. Although price did drop down to about 12 cents here on dose coin, which was absolutely ridiculous. I'm not going to say I'm surprised here, but holding this. Is actually great. It was a previous strong level of support at about 15 and a half 16 cents.

Now doge coin absolutely needs to hold this. If it falls below, that is going to be a  very bare sign for doge coin. Falling below that support level would put us at a price which was pre bull run for this current market cycle and dropping below giving us a target of about 10 cents, which would be pretty hard to climb out of considering we'd have that strong resistance at 15.

Which is currently support which would flip resistance. Now, guys, I'm going to talk a little bit about how to trade the Bitcoin dip in times like this. So if you've been around in the podcasts and things you've heard me say is time in the market, beats timing, the market. And what I mean by that is trying not to get too caught up on how low price can go when you want to buy.

Of course, everyone wants to buy Bitcoin at. Of a price as possible, but keep in mind when you were looking to get in as low as possible, you are not always going to succeed. And most of the time you are going to miss out on the opportunity unless you are a technical trader or very well-versed and technical analysis.

It is going to be very hard to guess where the bottom is going to be. So in that case, I like to recommend dollar cost averaging, which dollar cost averaging just. It's simply buying portions of an asset at different times to average out the price that you were buying at. So instead of buying a thousand dollars of Bitcoin here at 50,000, you would do 200 here, maybe wait a few days, maybe get another 200, wait a few more days now for that example.

Sure. There's a slight possibility that you've dollar costs and the upwards direction, meaning that you raise your average slightly higher. Although I would take. Over rewards, better safe than sorry, is always something to be appreciative of in this space. We can never be too greedy considering how volatile these assets are and just getting in and dollar cost averaging is some of the safest trading that you can do.

Then at that point, waiting for price to go down, you will be able to get back. Another tip of advice I would like to give would be not focused too much on Bitcoin in the news, the saying goes, sell the news by the rumors. Meaning that mainstream news around assets is not necessarily always a good thing.

It means that things tend to usually be overbought, which is why we saw the dip that we did. And the media, everything was switching over to Bitcoin. All these Bitcoin price predictions were coming for the new year and that ultimately put an evaluation on Bitcoin that was unrealistic and was over.

Therefore leading to this dump here. Reclaiming here would be absolutely very bullish though, which we've already discussed, essentially just diversify. What media you are consuming when it comes to these assets. That's all the time we have today. Guys. Thank you so much for today. You can follow and subscribe to our podcast, which will all be in the description below.

Have a great Tuesday