Investors are advised to focus on three core pillars of chart progression to enhance their conviction and clarify risk-reward scenarios. These pillars include price structure, context, and underlying data. Price structure involves analyzing ranges and impulses, while context examines changes in holder counts and demand dynamics. Underlying data, such as growth in crypto group chats and wallet sizes, provides additional insights.
The alignment of these factors simplifies decision-making, allowing investors to confidently hold or increase positions during dips. Tracking how much new wallets are paying for supply is crucial, as it indicates rising confidence among large investors. As whales compete for supply above key psychological levels, prices are expected to rise exponentially. This framework is particularly relevant as Bitcoin approaches a bottom, presenting significant opportunities for investors.
Understanding Chart Progression Key to Crypto Investment Success
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