A critical level for Bitcoin

Time to step in harder

The crypto market is selling-off, signaling the first signs of capitulation. However, based on the volume size, it's not a major capitulation, so there is still room for more downside. I did nibble a bit of BTC and ETH in case a bounce follows. Altcoins have been absolutely slammed in the last couple of months, while Bitcoin is still only down 18.50% from its all-time high. That's relatively minor for Bitcoin, and it’s still holding above the last weekly low at 57k.

So why did I buy? Generally, the best thing to do is the opposite of what we feel, and that's where the market is right now. BTC is at the bottom of its range after weeks of consolidation, so this is the time to add and step in instead of selling. This doesn’t mean BTC can't go lower from here. A break to the lower 50k range is not off the table, and this would really crush sentiment and flush out any remaining leverage. Eventually, I expect the weekly trend to reverse and see a bounce back up. However, it seems unlikely BTC will make a new all-time high before the summer.

That's why I've been saying for weeks that being patient is so important. There will be a time when crypto goes through a massive uptrend, but there are even longer periods when crypto does nothing, and we are in one of those periods now. To survive these times of boring consolidation, you need to be extremely patient and protective of your capital.

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