in BTC, Crypto

Buy BTC now [04/08/2020] or wait for a pullback?

In one line…you should wait for a pullback.

Bitcoin is currently at the $12,000 resistance and Ethereum at the $400 resistance.

That’s why they are likely to dump from here. They can of course also break through, at which point you can simply re-enter to catch the rally to $13,000, which is another 8% gains, yay.

Keep in mind that you are chasing 8% gains here. That doesn’t make sense, that’s not why people invest in crypto.

Right now, we’re seeing lots of FOMO, where people want the 8% gains so bad and they’ve already forgotten buying low selling high.

That’s what happens when Bitcoin goes up, people simply forget to sell, because they are FOMOing so hard to get those 8% gains!!

At the same, they are forgetting that whales can just dump on them and destroy 50% of their capital. It’s really funny, a few months of pumps and everybody forgets that.

Bitcoin’s mempool is filling up heavily on almost every single day now. It manages to clear after a couple of days, but never stays cleared for more than a few hours.

BTC Mempool

Source: Johoe’s Bitcoin Mempool Size Statistics

Anyone that thinks this isn’t calling for caution isn’t thinking clearly and had their mind clouded with FOMO.

Still, when Bitcoin goes past $12,000 or Ethereum past $400, you can simply re-enter.

So, you have two options

  1. Stay in Bitcoin and Etherum just before the resistance with a 50% chance to get dumped on
  2. Be in USDC and re-enter Bitcoin at $12,100 and Ethereum at $411.

As you can see it makes no sense at all to pick 1 and 2 is vastly superior to 1.

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