Bitcoin Up 21% In July - Time To Buy?

In my previous Bitcoin coverage, I highlighted a critical level that had the potential to end the dominance of the bears since November of last year and give the momentum back to the bulls.

The level has been holding firm since June, and the bulls have moved up 21% this month.

If the price of Bitcoin ends bullish by the close of July, this could be the first indication of a reversal in the market. 

However, there are no certainties, just probabilities, and so as investors, we have to be aware of all eventualities, a concept many overlook. 

A bullish argument 

The price at the time of writing is trading back above the weekly 200sma. In my previous articles, I have highlighted how the price has a history of dropping to this level and then bouncing off it taking the bulls on their next significant run. Could this level hold firm again and push the bulls towards $100,000?

Below is the weekly timeframe. 

A bearish argument 

The price is still trading below the daily 200 simple moving average and the lowest price point of 2021. If the bears remain below these levels, we could see the price drop towards $10,000 or at least stay in a sideways market for the foreseeable future. 

Below is the daily timeframe. 

The mistake most budding investors and traders make is predicting what price action will do next, eager to jump in and make money. This approach can work in the short term, but there is no longevity. This is a classic way to burn out or blow up.  

In contrast, good investors have a bias based on the asset's history and current market conditions. However, when taking a position, we apply patience to let the price confirm a clear direction first before allocating a negligible risk, typically less than 2%.

This way, if the position fails, the loss is insignificant, and there is no attachment to the position. 

However, if the position starts returning a profit, we take further positions, also known as compounding. This allows us to keep our losses capped and our profit uncapped in line with the saying cut your losers short and let your winners.

Patience for now until we get a clear trend direction. A bull revival is looking promising!