7:13 PM
Paul B
I am most certainly not a financial expert, and like quite a lot of folks right now, I'm learning as I go. One thing I learned today from a really great Youtube channel is how to understand SMA or Simple Moving Average lines of investments like stocks and cryptocurrencies.
Via Alessio Rastani:
Rastani posted that video yesterday, and at that time bitcoin hadn't reached the 200 day SMA. Well today, not only did it hit the 200 day SMA, at the time of this writing, it has actually dipped below the 200 day SMA!
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| Via Bitcoin Charts - One Year Chart |
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| Bitcoin One Month Chart |
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| Bitcoin One Month EMA |
Per Rastani's video above, once an asset hits or "tests" the 200 day SMA line (Actually he says EMA or Exponential Moving Average in his video, but as you can see above it's not much different than the SMA), that's the prime time to buy. Now, a lot of people are afraid to buy in this type of bear market, but as Warren Buffet says...
What Warren Buffet means to be fearful when others are greedy, and greedy when others are fearful is that when everyone is talking about how great an investment is and how high it is getting, that's the time to worry about the price falling. When everyone is scared because an investment is crashing so they start selling to get out, that's when you want to plan to buy. You know... buy low and sell high. It's the oldest rule in the game right?
So what do you think about this? According to Rastani's video above, bitcoin hadn't touched the 200 day SMA since 2015! Does this mean it's the right time to buy, or should people keep waiting? What do you think the floor price will be? Let us know in the comments!
