Since making majors lows in June 2022, Bitcoin and Ether have both been consolidating in a very constructive fashion. Due to its’ price action near critical support ranges around $20,000, I wrote this summer that I believed Bitcoin had bottomed. BTC has continued to show support at this range which is an excellent sign. The heavy volume selling that came in earlier this year may have been capitulation. I purchased some bitcoin today as it cleared recent resistance with heavy volume coming in.
Ether has shown even more impressive action than Bitcoin. While both ETH and BTC appeared to bottom in June, Ether made a lower low on its’ most recent reaction which is a bullish sign. I also added to my position today as Ether exploded higher on large volume. To learn more about Bitcoin and Ethereum, check out these short YouTube videos I made earlier this year.
It is important to note that there is always risk to trading, even if you believe a bottom may be in. It is crucial to define your "worst case scenario" no matter how bullish you are. As Ed Seykota famously remarked, "There are old traders and there are bold traders, but there are very few old, bold traders." The market will always be there. Just make sure you take the proper risk management steps to ensure you will as well.
To learn more about swing trading strategies, stock market trading, and how to trade cryptocurrencies, visit my course page.
Full Disclosure: I currently own Bitcoin and Ethereum.
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