Why This Is Not the Time to Be Selling Bitcoin!

The classic adage in investing is ‘buy low, sell high’ but that is easier said than done. Most retail investors tend to do the opposite. They chase the hype, pile in during bull markets, then panic and sell during downturns. Often, they sell undervalued assets at a loss and rotate into overvalued assets near the top. Before long, the new asset retraces sharply while the original investment they abandoned outperforms.

There is a common misconception that bull markets create wealth. In reality, wealth is built through multiple cycles of patience and disciplined accumulation. Those actively buying during bear markets rather than selling into fear are the ones quietly building long-term positions. They take advantage of panic sellers and depressed prices because they have conviction in Bitcoin’s future.

The ones who sell now, telling themselves they will buy back in at the bottom, rarely do. They often miss the opportunity entirely and end up rebuying Bitcoin at higher prices once the market is euphoric again. Time in the market beats timing the market every time.

The real question should not be ‘how low will Bitcoin go’ but rather ‘how high could it go’. If you understand Bitcoin, you know the answer. It is up and to the right. The same structural problems that make Bitcoin attractive as a hedge only continue to worsen. The use case strengthens, institutional and sovereign adoption grows, and many project Bitcoin could exceed $1 million per coin.

So if you bought Bitcoin at a higher price and are now considering panic-selling to rotate into other assets at all-time highs, take a step back. Assess the long-term picture. Do not get caught selling bottoms and chasing tops. There is a saying for investors who try to pick the bottom ‘he who tries to pick the bottom usually ends up with stinky fingers.’ Step back, stay calm, and dollar cost average. When the market turns, you will be glad you held your nerve.

We have been here before. Bitcoin pulling back from a fresh all-time high is not new. Negative sentiment is recycled content for the media and influencers because it drives clicks. Earlier this year, Bitcoin hit $100,000 before pulling back to $75,000. People panic sold, hoping to re-enter at $50,000 or $60,000. Price is now $92,000. Last year, it dropped from $74,000 to $50,000 and people panic sold. Same story, price is now $92,000. In April 2022, Bitcoin was at $40,000 and the market rang the bear market bell again. Yes, it dropped further, but most investors disappeared only to return and buy back in higher. You get the picture.

The ones who sell during peak fear and listen to those saying to get out might laugh for a moment, but over time, they usually end up with egg on their face. The ones who buy during those moments are the ones who always have the last laugh. So what’s going to be different this time?

Now let’s look at one of the more talked-about signals: the death cross.

Death Cross: Not Always a Death Sentence

The death cross is when the 50-day simple moving average crosses below the 200-day simple moving average. It is typically seen as a bearish indicator. But let’s dig into the data.

Since 2021, the death cross has occurred five times. Two of those crosses happened after the bottom was already in. Two others occurred just days before the bottom. Only one of them, the outlier, preceded a longer bear market that took Bitcoin to $15,000. In other words, four out of five times the death cross either marked the bottom or was very close to it.

Now add to this the fact that sentiment is at multi-year lows. These levels have historically marked bottoms, often within the same month or shortly after. This supports the idea that we could be much closer to the bottom than most realise. This is not a time to sell. It is a time to accumulate and stay patient.

Stormrake Spotlight: Hyperliquid (HYPE) ($38.50)

HYPE had another flat session and in this market, that is not a bad thing. Bitcoin dropped 2.50% yesterday, yet HYPE held firm. It appears to be building a base, which signals strong underlying demand.

The key level to watch remains $35.35. That higher low is pivotal. If HYPE can form another higher low above this level, it would be a strong sign.

BTC/USD Key Levels and Price Action:

As expected, the yearly open level did not hold. Bears rejected another rally at the 21 EMA, and Bitcoin now looks set to retest key support at $88,888 in the coming days.

BTC Total ETF Flows for 17 Oct: (data not available at the time of writing)

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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