Bitcoin has always been a volatile asset, with its price fluctuating wildly over the past few years. This has led many investors to question the best way to approach investing in Bitcoin considering its long-term potential, and one popular strategy is stacking it at a specific technical line, which has been shown to be profitable over time.
So we all learned our lesson from this #Bitcoin bear market, the 2019 bear market, and the 2015 bear market, right?
You stack like a fucking psychopath below the 200 WMA. pic.twitter.com/DDc9UJqzlN
— Wicked (@w_s_bitcoin) January 25, 2023
On-chain analysis of Bitcoin has become increasingly important in the current bear market. This type of analysis looks at the number of transactions, the number of wallets holding bitcoin, and other data that can provide insight into the underlying health of the bitcoin network. This information can be used to make informed decisions about when to buy and sell bitcoin.
One popular technical line for stacking bitcoin is the 200-day moving average. This line is used to identify long-term trends in the price of bitcoin. When the price of bitcoin is above the 200-day moving average, it is considered to be in an uptrend. When the price is below the 200-day moving average, it is considered to be in a downtrend.
Many investors have found it true that stacking bitcoin at the 200-day moving average has been profitable over the long term. This is because when the price of bitcoin is above the 200-day moving average, it is more likely to continue to increase in price. When the price is below the 200-day moving average, it is more likely to dump before having a retracement.
One of the key factors that make stacking bitcoin at the 200-day moving average so profitable is dollar cost averaging. This strategy involves buying bitcoin at regular intervals, regardless of the price. This helps to mitigate the risk of buying at the wrong time and can lead to significant long-term gains.
Dollar cost averaging is particularly important in the current bear market. With the price of bitcoin fluctuating wildly, it can be difficult to know when the best time to buy is. By using dollar cost averaging, investors can ensure that they are buying bitcoin at a consistent price, regardless of the market conditions.
In conclusion, stacking bitcoin at the 200-day moving average has been shown to be profitable over the long term. On-chain analysis of Bitcoin and other cryptocurrencies keeps becoming increasingly expedient, especially in bear markets and dollar cost averaging is a key strategy to maximize long-term gains. Therefore, it is quite essential for every investor of Bitcoin to possess this knowledge in order to ensure their long-term gains.