Price Discovery Pullbacks
Bitcoin is now in price discovery mode, and we don't have past price history to base decisions off. Today, I will run through how my analysis frameworks change for stacking sats during price discovery
G’day Folks,
Price discovery is the phase of a bull market where the market trades well north of any previous price history. There are no obvious support and resistance levels, and the market becomes driven primarily by animal spirits, and tends to climb a wall of worry.
The bulls bid every dip in euphoria, and the bears become increasingly pessimistic, looking for every reason why this rally is the last one.
As we covered earlier this week, corrections and consolidations are both expected, and absolutely necessary, helping satiate both teams.
The reality is that the bulls usually expect things to happen faster than they do, and succumb to FOMO buying local tops as a result. The bears lose endless sums trying to short the top, and tend to over-leverage at the exact bottom of dips, adding fuel to the fire as it rallies higher.
The easiest way to lose money in a bull is by buying too high, panic selling low, and getting swept up in the emotions in both directions.
In this piece, I want to explore how my analysis framework changes during price discovery, and the tools I use to navigate pullbacks in particular.
The aim is to take a measured approach, and counter-act the feelings of both Fear and FOMO, by making my decisions in advance of the move.
Important Update: Checkonchain Orange Early Bird Offer Now Ending This Month.
In case you missed it, Orange is our newly launched plan tier that sits above the Paid plan. Due to overwhelming demand, we have decided to close the early bird offer on 1st December 2024, instead of 1st January 2025.
This means the price for new Orange Member subscriptions will increase from $1,200USD to $2,400USD effective 1st December 2024.
All subscribers who are already on, or upgrade to Orange before 1st December ‘24 will lock in this lower price, and be grandfathered in for as long as you’re subscribed.
Huge thanks to all of our new Orange members! We appreciate your support.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
Premium Members will find the TL:DR summary, video update and the rest of the written post below. Consider upgrading to premium today to unlock the rest of the content!