- Bitcoin has hit the Buy Zone!
- Don't get caught up in the fundamentals of digital currencies, it's just a trade.
- 4 steps to huge returns, but keep exposure small, it won't take much capital to make huge returns.
In my last article on Bitcoin in October, when it was at $7,200 USD, I provided our price target of $2,488 - $4,175 that could conclude prior to the end of this year. Like clockwork, it’s hit this target. In this article I’ll reiterate the upside targets and a long term trading plan for how to approach Bitcoin for handsome profits.
Cryptocurrencies represent the proverbial “raw nerve” of crowd sentiment, and as I previously discussed, there is no better measure of crowd sentiment than applying long term logarithmic Fibonacci extensions to the underlying wave patterns to volatile instruments like those of digital currencies. Macro fundamentals are no doubt relevant in understanding how digital currencies and block chain technology fit into how commerce will be conducted in the future. However, in practical terms of where to enter long positions, or where to exit and stand on the sidelines, a discussion of the macro fundamental merits of Bitcoin or other cryptocurrencies belongs with a glass of brandy and a comfortable chair next to a nice warm fireplace.
For our purposes, we see some great long term swing trade opportunities setting up in Bitcoin. For those willing to participate in two key trades in the coming years there's an opportunity to amass significant profits. This is an extremely volatile sector, so when you do invest, hold your nose during the huge value swings that will occur. The simplest way to ensure you stay the course is to right size your exposure. It doesn’t take a lot of capital to make a lot of return, so don’t feel as though you need massive exposure to cryptos, and in fact for most I would advise against anything more than a very small portion of your capital.
So, let’s look at a simple long term plan on how to make extraordinary profits from Bitcoin, with 4 simple steps: 1. Bitcoin is in the buy zone now, so buy Bitcoin now, or between current levels and $2,600. Upside targets are $30,027 at the 2.382, or more likely $77,897 at the 2.618 extension. Continue reading this article at SeekingAlpha.com