When is a big bitcoin sell-off actually a bitcoin buy signal?
The plunge in bitcoin during the past few days has really been something to behold!
After three and a half months in a narrow trading range (which included a couple of failed rally attempts), the cryptocurrency has seen a quick series of serious price plunges.
Is This The End For Bitcoin?
Crypto skeptics have been quick to jump aboard the doom-saying bandwagon.
Nouriel Roubini tweeted: “With BTC down almost 80% from peak (from 20K to ~4K) & all other cryptocurrencies down 80% to 99% I rest my case that this crypto bubble went bust for good. I feel vindicated.”
Others attributed the bitcoin sell-off to the fallout from the contentious hard fork and the current hash power battle between Bitcoin Cash SV and Bitcoin Cash (BCH). On November 15, the price of BCH suffered a massive plunge, dropping from $450 to $270, with BCHABC also suffering significantly from the conflict.
As Roger Ver, a renowned cryptocurrency investor and Bitcoin.com CEO, said, “no one wins a war. Some just lose less than others.”
Why This May Be A Bitcoin Buy Signal
But even so, does this selling frenzy really mean the ultimate end for bitcoin?
Isn’t it just as likely that we’re seeing an important bitcoin buy signal instead?
A lot depends, of course, on exactly how we choose to interpret the current bitcoin price action.
Is the glass half empty or half full?
Is this potentially a clear Bitcoin Buy Signal for Dedicated HODLers?
If you’re a HODLer, a dedicated fan of the cryptocurrency who’s committed to holding on for dear life in the midst of market chaos, it’s still important to understand the ways that cycle dynamics can impact bitcoin price action.
It’s not about buy-and-hold as a general principle and long-term strategy. It’s also about increasing your potential returns from the markets based on a clear set of ego-driven needs.
In other words, the need to be right ranks pretty high on the list of HODLer priorities. But if that’s your alignment in the cryptocurrency market, this is definitely a time to buy.
Solar Cycles Create Bitcoin Buy Signal
But that’s not all.
When we were doing the research for our book on Bitcoin Astrology earlier this year, we paid particular attention to the planetary phenomena that can help set up potentially profitable bitcoin trades.
Because they have had more iterations than some other phenomena, we found that some solar cycles are particularly significant.
One of them is described on page 113 of the Bitcoin Astrology book: the Sun transiting from 29 degrees Scorpio to 4 degrees Sagittarius.
Based on the six previous examples of this transit during the trading history of bitcoin, we found that it has coincided with rising bitcoin prices 100 percent of the time.
In other words, this is an extremely strong bitcoin buy signal.
Even more importantly, it’s a signal that applies right now.
At about 4:00 a.m. Eastern Standard Time this morning (November 21) the Sun hit 29 degrees Scorpio, creating this bullish bitcoin buy signal.
The bullish transit will conclude at 3:00 a.m. Eastern Standard Time on Tuesday, November 27, 2018.
So, with bitcoin currently trading at about 4441.81 per US dollar, we’re entering a long position for a short-term swing trade, in spite of the big selloff that’s been underway for the past few days.
We’ll exit the trade late on Monday – and see how well this particular bitcoin buy signal performs this time around!