The Bullish Market Structure Of Bitcoin (BTC)

• BTC the risk off asset

• 3-day rule in stock trading

• Early dip, middle dip, late dip in price

Markets Now in The Bull Case Bitcoin asked: There is this ongoing debate about whether Bitcoin is a safe haven, or an inflation hedge, or whether it is just a speculative asset. Which one is it? Put this debate to rest.

Michael Saylor, Chairman and CEO of Microstrategy: “Bitcoin has perfected gold – it is digital gold. It has also perfected property – digital property.

And, people who are trading it now without having studied it for 100 hours, they trade it as a risk asset. So, they trade it like any kind of tech asset. But, those that have spent a lot of their time to understand – they understand it as the ultimate risk off asset.”

When someone is bullish, they are expecting for the price to rise over a certain period of time. A bullish market indicates that the market is rising and that the overall economic trend is optimistic. Also, indicative that the businesses are growing well. A bullish asset is expected to be one that will over perform and potentially increase in value.

It is good for anyone who invests in an asset type before the price increase takes hold of the price.

Bullish run for the Bitcoin is when the price of BTC is consecutively rising for a long period of time.

3-Day Rule in stock trading: After a bull run there is always a correction and sometimes a crash. The 3-day rule in stock trading is when there is a substantial crash of price by “higher single digit” or more in percent change, investors should wait for 3 days to buy.

It is important to know that such a “rule” or “principle” existed because investors often feel tempted to buy an asset type as soon as it falls sharply.

Buying an asset at discount is looked at an opportunity to buy the asset at a discount. It is commonly seen that sudden drop in price causes high sales, the 3-day rule is a practice before buying an asset at a discount.

Why did the price of the digital asset fall? No matter how low the price can appear, it helps to do a due diligence check. The asset should have a future. Buying an asset without future does not help.

Bitcoin is considered to be a hold forever asset. And, advocates have to state that the price of BTC will go higher and higher. So, it just looks like BTC is considered to be an exception to the 3-day rule by those who believe in the asset.

When taking the exception to 3-day rule for BTC with a grain of salt, for those who buy the “initial drop” “mid drop” “late drop” the price difference is going to be there. If for some reason, they want to cash out and if the price would not near the high desired, it is again tricky.

It is not everyone’s cup of tea to be waiting for ever for the low, but to avoid substantial loss during an emergency when a cash out becomes essential, it helps to buy the late drop to get the price. The challenge of timing the market continues despite all the theories and propaganda.