Bitcoin Price Takes a Dip As Sentiment Remains Bullish
Bitcoin was able retest its all-time high only to be rejected. It took the rejection rather well considering the fact that bulls were buying it up around $18.2k. At the time of writing, bitcoin is down 2.8% for the day trading at a price of $18,875.
According to CoinDesk, bitcoin went as high as $19,920 before momentum stalled. When it hit the wall it toppled down to as low as $18,171. Needless to say, the bulls are not giving up.
Market technician, Katie Stockton thinks that $19,511 is the resistance level to beat. We need to flip this level as our support and wait for accumulation to create another floor to jump off of.
In times of major euphoria and excitement it’s best to keep a cool head when planning out your investment strategy. Taking profits on the way up and storing cash on the side, waiting for a correction is always a solid bet. It’s simple but not easy to follow. Once you feel that price has corrected well enough to reenter the market use dollar-cost averaging to recover your position. When reentering make sure you start with a small amounts and increase your buy-in as price begins to stagnate.
Omkar Godbole, analyst for CoinDesk, puts the dollar-cost average theory to the test. He starts with accumulating near the peak of the 2017 bull run until now and you can see the immense return by just sticking to the strategy.
By putting $100 a month for a little over 2 years you get around a 2.5x return on investment. What cost you $3,600 would have been around $9,000 in todays value (1 BTC ~ $18,700).
If you want a brain dead strategy: Dollar cost average, buy extra on dips and stay long. Not financial advise, just my opinion.