No one ever went broke taking profit early
One of the dangers of a blow-off move (and that is what Bitcoin is doing) is that you sometimes get into the excitement of the move and forget to take some profit off the table. Right now, Bitcoin just hit the bottom of the Ichimoku Cloud on the daily chart: that’s generally a good sign we’ll see some resistance and down pressure – not forever mind you, but it’s an initial test of these prices and a good area to peel some off.
As we can see, Bitcoin is on a beautiful drive higher. And I am very much bullish on the movement here both seasonally and sentiment wise. But let’s not forget to play this smart. Could prices just roll right through the 7100 value area? Sure. Likely? Sure. Worth it to risk some of the initial gains I’ve made? Nope. Gonna peel some off. The chart above shows Bitcoin resting right on the bottom of the daily cloud. Let’s look at another chart.
This is Cardano’s chart. On the daily, it’s on a big move as well, but the closer it gets to the Base Line (red moving average) the weaker it gets and when prices move up to the Base Line when we’re below the cloud, there’s rejection. So for me, it’s time to peel some off from my ADA position – which I’ve done.
WTC (Waltonchain) is another I’ve pulled some profit off of. Actually, I’ve taken all the profit on this position. Three daily candlesticks with the current daily showing a big-time hammer – I’m willing to err on the side of taking profit and buying higher than seeing a flash down and missing out.
Litecoin is another where I am peeling some profit off of. Just like Cardano’s chart, Litecoin is up against the Base Line – closer in fact.
Don’t get me wrong here folks – I’m crazy bullish still. But no one ever went broke taking profit early and cryptos are one market where if it feels like you should take profit, then it is probably time to take profit. What’s the risk? Very little: I might have to buy in a little higher, but I’ll risk that scenario over a swift -5% drop in any one of my positions. This is called ‘babysitting’ my positions. I’ve got plenty of powder dry now to buy back in cheaper tonight or tomorrow.