Buying Bitcoin at long term support.

On 5 May 22, I published a blog on why I was looking to add Bitcoin to my portfolio.

The plan was to have gold, silver and Bitcoin form 4% to 5% of my portfolio as insurance against fiat currencies.

This decision was made after plenty of thinking and research.

Of course, there are plenty of cryptocurrencies available but I am only interested in Bitcoin because of the "Bitcoin is digital gold" line of thought.

I have no interest in the "Buy cryptos to get rich quick" line of thought which has a strong speculative flavor to it.

When something gains traction and greater mainstream acceptance, often, we see variants of it spawning as everyone tries to get a piece of the action.

It is no different in the crypto space and very recently, the crypto space had their version of Blumont/Asiasons crash.

Seeing is believing:

Luna has crashed.

Crash is probably an understatement as this Luna crash puts the craters on the Moon to shame.

Many who placed heavy bets on Luna lost everything.

Terrible.

What about Bitcoin?

Well, it is crashing too but not in such a dramatic fashion.

I only got my little toe in the Bitcoin door a couple of weeks ago.

Why not a foot? 

I initiated a very small position because I saw a bear flag in the chart.

The suggestion was that price could go a bit higher and then it could swing lower and I would accumulate only at a lower price.

So, with the price crashing now, when would I be buying more Bitcoin?

Using simple moving averages to throw some light on that matter, the 200 days moving average seems like the one to watch.

Chart dated 12 May 22.

This 200 days moving average is still rising and approaching US$22,000.

Just quick and dirty technical analysis.

Of course, technical analysis shows where the supports and resistance are but it doesn't tell us if they would be tested.

Will just have to wait and see.

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