Veteran Trader Explains How To Check Whether Bitcoin Is Cheap Or Expensive
Last Updated on 26 September 2021 by CryptoTips.eu
Bitcoin is still almost double what it was at the beginning of 2021 and even with that fantastic gain, many are complaining that we’re not seeing the record $64,000 level anymore set in April already.
In order to gain insight, crypto influence Scott Melker had an interview session with City trader Charlie Burton. The latter has been in the business of technical analysis, investing and interpreting charts for a few decades, so that’s always a good reference.
Flush out the weaker hands
Burton, a veteran financial trader who’s lived through various bull runs and recessions, is also the co-founder of Ezeetrader. He firstly explains that it is important for every trader to have a defined set of rules that they stick to when emotions begin to take a hold of you, which is of course a golden rule.
Looking at the 2021 Bitcoin chart, Burton still feels it is overall bullish, but the next phase of Bitcoin will be coming with ups and downs. In the very lively conversation, he points out that:
I was being interviewed back in May when we had the flush down there and one of the best things I said that could happen is we just go sideways for a while. We needed to flush out as we did some of the weaker hands.
At that point, Burton refers to the drop from $60,000 in April all the way to $29,000 in July. He then continued by saying:
Bitcoin then had a nice run up from $30,000 to some $50,000 there and then the next thing happened. I kid you not. A few weeks ago, my car dealer phoned me up. I know him quite well, cause I’ve had a few off of him.
Burton regularly posts movies of himself in new cars. He recently acquired a Ford Shelby.
And he said, all of my technicians are talking about Bitcoin, do you think I should be investing into it?
The quote is around the 17 minute mark.
Now technically, when technicians in a car workshop start talking about a run up in Bitcoin, it means that most of the public (who don’t regularly trade) know about it and that is mostly a sign that it’s time for a reversal, which is of course what happened in the beginning of September.
What a treat being in this Shelby today… pic.twitter.com/GNHMVcQhK4
— Charlie Burton (@charliebtrader) September 12, 2021
As we near September’s ending though, Burton is still very bullish on Bitcoin and even hopes that it would hit as low as $30k again so he can buy the dip. Because in the long run, even technically, all signs still point to higher up he explains. A great listen.
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