I’ve been saying for some time that the best way to invest in crypto is to dollar cost average into a position you are comfortable with. Meanwhile, I have not been a bull because I feel the Damocles sword of the SEC and the issues of security, counterparty or otherwise, for me takes the shine off holding a big position. But there are plenty of “bold pilots” out there who aren’t risk off like this “old pilot.”
However, for me there is a stunning chart in bitcoin that should make the bulls rejoice and it’s quite a compelling formation for those interested in technical analysis.
Firstly you have to care about fractals, patterns formed by repeating processes. Fractals, discovered by Professor Benoit Mandelbrot, has been a niche technical analysis technique for a long time and the crypto crowd are more interested in it than the equity crowd, probably for generational reasons.
Here is the chart with its fractals highlighted:
The bitcoin chart with fractals highlighted
Credit: ADVFN
Of course, if the full pattern repeats we are off to the moon and of course you should be skeptical but how about this?
Long-term bitcoin chart showing fractal patterns
Credit: ADVFN
This fractal help guided me on a very profitable campaign in 2020-2021. It must be stated fractals are not mirror images just eerily repeating patterns. This is what one looks like in nature, so eat your broccoli:
Fractals in romanesco broccoli
Shutterstock
So here is that moon/crash master fractal from 2013 (twice):
The bitcoin chart in 2013
Credit: ADVFN
So if you are in the bitcoin x10 crowd you can use these fractals to be your guide, but of course if you are a bitcoin maxi you can just DCA and HODL forever–this kind of thing is just noise.
The project bitcoin ETF will help normal investors hold bitcoin and the halvening is on the way (April, 2024). However, crypto has a risk surface so complex that dollar cost averaging remains a solid way to go unless you are confirmed in the heroic but precarious style of the bold pilot who wants to go full bore.
