Bitcoin price action & predicting future trends

This market takes courage and perspective, meaning HUGE wins or losses won’t affect you too much emotionally.  Emotional traders lose while those with a plan who can objectively buy low and sell high have better prospects for winning.

I can’t speak for individual investments, but in general investing 1 to 5% of an investment portfolio is plenty for crypto and can help you sleep peacefully at night.  Otherwise this market may not be for you…

Price action involves simplifying your charts and taking an educated guess where the market is going in the future by using data from the past.  Its also good to have an idea when the smart money (large investors) are investing.  

Volume along with price action can also be a very important tool to use.  If a big trader decides to buy and there is really no price jump to be seen then there is a good chance this is accumulation before an uptrend.  Looking closer you can tell that this lonesome buy was pretty much one trade and the price stayed within range. 

The next chart shows 4 months later that the upswing began in EOS.  Following the smart money is another good tool to trade and accumulate in this market.  

Here is a coin that had a big buyer yet the price kept heading down.  Not a perfect art for sure, but you can see that this would be a coin to keep your eye on as smart money may be waiting for the upswing. 

I don’t want anyone to get the idea that this a perfect science.  We have tools to work with and we need to use them all in order to get the best information possible.

During the depression phase of the J-curve is when the smart money will quietly accumulate preparing for the next upswing.  The following example shows price staying within a range, staying between support and resistance for close to 5 months then breaking out and making resistance support before the big upswing.