NapBots Newsletter — January 12, 2021.
Bitcoin freefalls to $30,000 but recovery seems imminent.
What a day and welcome to the crypto world for the late joiners. As can be seen from the graph above, we were in strong bull mode until 3 days ago. We were even in what I have labelled in “extreme market conditions”.
We have indeed developed a new indicator that will soon hit Napbots platform. With this indicator, we advised on our Telegram channels to trade on the safe side. We also indicated that overweighting our 2 “Hourly 2” (BTC & ETH) strategies for the platinum members might be a good idea. These strategies are indeed much more reactive to swift changes in trends. They reacted superbly in these circumstances.
All of our other strategies have trading horizons ranging from 5 to 25 days. On these scales, there was no reason to turn short or even flat as of Sunday night. I know it feels frustrating for a lot of you, but markets never go up in one direction without breathing. Just in these circumstances we never know from which level this breathing will occur.
So, we need additional indicators to help us navigate these tumultuous periods. It stopped flashing red yesterday morning after a large portion of the dump. This is why we have developed our latest indicator. It will soon appear on your dashboard with some useful additional information.
All I can say is that we share your pain for those of you that have lost yesterday. We tried to prevent this as much as we could, but some were hurt. Some followed our indicators and did pretty well protecting their last weeks’ gains. Trading is about having a plan and sticking to it in good but also in hard times.
Now is not the time to give up and cut everything in despair. Our tool is here to help you control your emotions. This is the main reason people are losing against experienced traders. They lack the nerves.
From here, the dump looks complete from a technical perspective and we should now expect some swift countertrend movements. Don’t be lured by these rapid ups and downs.
They are here to take money away from you if you act badly. The overall correction could last from a few days to a few weeks. The bull market will soon be back without warning. Fasten your seat belts and stay away from trading screens.
ETH Hourly 2 — All Time High
BTC Hourly 2 — All Time High
Before reaching our holy grail of 100–250k USD price for BTC, be prepared to much higher volatility. Remember that trading is about designing and executing a plan.
Do not let your emotions take over your decisions. Let our bot do their job. There will be plenty of time where the market will want you to doubt about the next move. Stick to our bots, they will do the job for you.
Pay attention to our market comments as they might help you understand what is going on. In the next few weeks, follow our new market regime indicator and the associated information to help you better allocate between hourly strategies.
CEO of NapBots