Bitcoin Has Crashed AgainWhat Now? – Forbes

(Photo Illustration by Chesnot)

Ive been drawing and posting the following chart, and variations on it, a lot recently and being bearish that the outcome would be a breakdown.

The Bitcoin chart as I have been drawing it lately

So here it is and here is a bearish map:

The Bitcoin chart is bearish

So we are looking down the barrel of another potential $1,500 drop.

What to do?

Firstly, a change in the global situation could dramatically change the picture.

Bitcoin (BTC) is falling because China is closing with the U.S. on a trade deal.

The recent sudden fall, at least in my model, is because the deal suddenly got much closer.

Again, in my model we should hear this good news in the coming days.

What to do depends on your position:

Personally Im buying the dip and happy to have an equity hedge. BTC seems to have 5-10 convexity to my equities, so what is not to love?

Its hard to sit there and watch positions take a beating but that is what hedges do. The key is the overall result and one thing is for sure, chopping and changing is expensive and very, very hard to get right.

So buy and hold and dollar cost averaging is the way to go with BTC and it looks like there is some cheaper BTC coming our way.

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Clem Chambers is the CEO of private investors websiteADVFN.com and author of Be Rich, The Game in Wall Street and Trading Cryptocurrencies: A Beginners Guide.

In 2018, Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards.

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Bitcoin Has Crashed AgainWhat Now? - Forbes