Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin: Striking Out Is Good

By Korbinian KollerCryptocurrencyApr 20, 2021 06:03AM ET
www.investing.com/analysis/bitcoin-striking-out-is-good-200574086
Bitcoin: Striking Out Is Good
By Korbinian Koller   |  Apr 20, 2021 06:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Babe Ruth (“The Great Bambino”) was an American professional baseball player with the most home runs (714) in history in his time (still number three today). This larger-than-life figure also held the record for the most strikeouts (1,330) at the same time.

What we mean to say is that you need to strike out to hit home runs. Trading is no different. Every professional will tell you that you can only learn from your losses and that taking a loss is the most important skill to acquire.

Bitcoin, striking out is good.

Still, as humans, we have a hard time being proven wrong by the markets. We make many mistakes like running stops to avoid accepting being wrong!

Bitcoin is clearly in a significant bull market, and one of these mistakes is not pulling the trigger. We fear with prices this high, it is too late to get into the Bitcoin market. Wrong!

BTC-USD Daily Chart: What Happened Since Last Week

Bitcoin In US Dollar, Daily Chart As Of Apr. 19, 2021.
Bitcoin In US Dollar, Daily Chart As Of Apr. 19, 2021.

Last week’s false breakout to all-time new highs stopped at US$64,895 and retraced below the previous all-time high US$61,781. A few days later, we had a double-digit intraday percentage bar down, proving this attempt to break through prior highs to be a false breakout.

There is always this debate in one’s head: “Is the retracement done? Should I try again?” “Will it go to all-time new highs again? Maybe even break to new ATH,” “Will it bounce from this support?”

You can’t afford to listen to these voices. You need, like Babe, to give it your best shot on each low-risk opportunity; some will strikeout, some will be home runs. It is useless to try to predict the future when no one can. All we can do is identify a high probability turning point and execute the trade to the best of our ability.

BTC-USD Daily Chart: Early Warning Signs

Bitcoin In US Dollar, Daily Chart As Of Apr. 19, 2021
Bitcoin In US Dollar, Daily Chart As Of Apr. 19, 2021

This chart shows that as much as the market has managed to make higher highs, it seems to run temporarily out of steam. The lower line of the linear regression channel got penetrated, and we might see a transition from a steep upward move to a sideways zone.

BTC-USD Weekly Chart: Bitcoin, Striking Out Is Good

Bitcoin In US Dollar, Weekly Chart As Of Apr. 19, 2021.
Bitcoin In US Dollar, Weekly Chart As Of Apr. 19, 2021.

Nevertheless, stepping a timeframe up to the weekly chart shows a clear dominance of the bulls. While we might reduce position size slightly to honor early warning signs, we cannot assume that we can foresee the future. Quite the contrary, each retracement for a contrarian, provides an opportunity. We take low-risk entries in the zone between US$51,000 and US$55,000 should this opportunity present itself.

Like Babe, we show up to the game, give it all we got—and accept the strikeouts, knowing they are part of the process to get those home runs.

Reading through sports autobiographies, you will find many principles in alignment with trading. The Bambino wasn’t the only one realizing that learning to lose is a skill necessary to become a consistent winner. Once you have identified a trend, you need to work it.

Alongside stacking additional edges to the directional advantage, you can’t expect all trades to be winners. It is necessary to consistently take small risks and allow trades to develop to either be small losers, medium winners or turn out to be those home runs where you truly get paid.

Bitcoin: Striking Out Is Good
 

Related Articles

Crypto Briefing
Bitcoin Rebounds On Elon Musk Tweet, Taproot By Crypto Briefing - Jun 14, 2021 1

Bitcoin jumped 10% Sunday through Monday. The market turned bullish after an Elon Musk tweet about clean energy mining and confirmation of the protocol's Taproot update.Key...

Bitcoin: Striking Out Is Good

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
md mohiuddin
md mohiuddin Apr 20, 2021 2:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good Job
Thompson Williams
Thompson Williams Apr 20, 2021 9:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great work
Butch Einsel
Butch Einsel Apr 20, 2021 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great work ty
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email