Entry and exit strategy for Bitcoin pt2
Updated
Hello everyone,
In my last post I've provided an update regarding Relative Strength Index (RSI) and how two overbought signals on monthly chart can be used for exit strategy in cryptos, especially Bitcoin.
As you can see at the bottom of the new chart, we are quickly approaching the first RSI bubble and value of the RSI is already around 91 points (1st April 2021).
This time I would like to share with you the newest version of the aforementioned analysis, which includes Reverse Pi Cycle Top Indicator. The Standard Pi Cycle Top indicaotor (i.e. 2x EMA250 / EMA111) was already very good and quite precisely indicated top of the Bitcoin bubble when those two exponential moving averages crossed. However, with logarithmic scale and reverse function we observe and blue line that has to cross EMA250/EMA111. When blue line dives and cuts through exponential movinf averages then the top of the price is ultimately achieved! Thanks to this indicator we can precisely estimate how long will it take for the lines to cross instead selling before the price peak.
Another great indicator that can be used for our exit strategy is Net Unrealized Profit/Loss NUPL, however access to on-chain data is not available via TradingView and additional website i.e. Glassnode would have to be included.
I believe we are very close to the top of the first RSI bubble, this information is supported by Reverse Cycle Top Indicator, NUPL or Puell Multiple lookintobitcoin.com/charts/puell-multiple/ and other e.g. MVRV Z-Score lookintobitcoin.com/charts/mvrv-zscore/
From my perspective, soon we are going to see higher price of Bitcoin, potentially up to 70k or even a bit more, however we should not get greedy and sell the coins before the price drop by 50-60%, exactly as in previous cases when RSI was overbought or Pi Cycle reached it's peak.
Don't wait for too long with selling of your cryptos as there may be a massive sell off and exchanges may get clogged/blocked due to amount of volume and people dropping their coins at once.
Regards
Simon_says
In my last post I've provided an update regarding Relative Strength Index (RSI) and how two overbought signals on monthly chart can be used for exit strategy in cryptos, especially Bitcoin.
As you can see at the bottom of the new chart, we are quickly approaching the first RSI bubble and value of the RSI is already around 91 points (1st April 2021).
This time I would like to share with you the newest version of the aforementioned analysis, which includes Reverse Pi Cycle Top Indicator. The Standard Pi Cycle Top indicaotor (i.e. 2x EMA250 / EMA111) was already very good and quite precisely indicated top of the Bitcoin bubble when those two exponential moving averages crossed. However, with logarithmic scale and reverse function we observe and blue line that has to cross EMA250/EMA111. When blue line dives and cuts through exponential movinf averages then the top of the price is ultimately achieved! Thanks to this indicator we can precisely estimate how long will it take for the lines to cross instead selling before the price peak.
Another great indicator that can be used for our exit strategy is Net Unrealized Profit/Loss NUPL, however access to on-chain data is not available via TradingView and additional website i.e. Glassnode would have to be included.
I believe we are very close to the top of the first RSI bubble, this information is supported by Reverse Cycle Top Indicator, NUPL or Puell Multiple lookintobitcoin.com/charts/puell-multiple/ and other e.g. MVRV Z-Score lookintobitcoin.com/charts/mvrv-zscore/
From my perspective, soon we are going to see higher price of Bitcoin, potentially up to 70k or even a bit more, however we should not get greedy and sell the coins before the price drop by 50-60%, exactly as in previous cases when RSI was overbought or Pi Cycle reached it's peak.
Don't wait for too long with selling of your cryptos as there may be a massive sell off and exchanges may get clogged/blocked due to amount of volume and people dropping their coins at once.
Regards
Simon_says
Note
Altcoin Season Indexblockchaincenter.net/altcoin-season-index/
Note
Note
Note
Note
Note
Note
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.