Buying Bitcoin at the Trend Line
See my earlier post on joining the Bitcoin party to understand my intentions and approach. Bitcoin has now dropped to the 50 day moving average, and I bought more at $11,450.
Here's the $NYXBT chart showing the two traditional moving averages:
There are two likely scenarios going forward:
Bitcoin stabilizes more or less at this 50 day moving average, and resumes its uptrend.
Bitcoin falls further towards its 200 day moving average, another 50% drop.
At this point we just have to wait and see. No matter how the price moves, I will not take any further actions until at least March, to give some time for the price to find its direction.
Technical analysis lets the charts (instead of emotion) speak to you. According to traditional technical analysis, we are still most likely in an uptrend. This only falls into question if the price drops below the 200 day moving average and stays below it for a while.