The cryptocurrency market is known for its volatility. Although Bitcoin (BTC) has been calmer in recent days, crypto is not without risks.
During the BTC rally, investors watch carefully. The time for a correction or a shot to the top is expected.
A technical analyst created a model he called “easy” to trade BTC during the bull run.
The model responsible is the analyst known as CryptoBirb. On Twitter, he is famous for his analysis and graphic models aimed at beginning investors.
In the publication made on Wednesday (25), Birb displayed a graphical model based on simple moving averages (or SMA).
The SMA averages a price range, usually closing values. The average is calculated over the number of periods within a graphic range.
According to CryptoBirb:
Here’s another cheat sheet for yall. It reveals the easiest trading system alive, which is perfectly in play with the current $ BTC rally. Follow me on with that and it will save you big $ guaranteed. Also huge news coming in 2h. If you enjoy my free content just like and share🙏 pic.twitter.com/fB1YCq7YER
— CRYPTO₿IRB (@crypto_birb) November 25, 2020
“Here is a new spreadsheet for you. It reveals the easiest trading system in existence, which can be perfectly used at this BTC high. Follow me with her and you will have a lot of money guaranteed. ”
The simple moving average shown in the graph is based on 50 periods. In English, the analyst details actions traders must take according to movements in the Bitcoin four-hour chart.
Below, it is possible to have a detailed view of what is exposed:
However, there is a problem in the whole scenario. Experienced traders advise newbies to follow their own methods.
Through the trial and error process, aspiring traders discover the strategies that best suit their investment style.
In this way, the statement of “the easiest existing model” becomes subjective.
Who agrees with this line of thought is Wellington Silva, trader and creator of the educational project WS Trader.
In a conversation with CriptoFácil, Wellington agrees that it can be profitable, but asks:
“It can be profitable. It is certainly profitable during a trend, but is it profitable in the long run when including consolidation periods? ”
Finally, the trader states that the model cannot be tested, precisely because of its subjectivity:
“Unfortunately, his model [CryptoBirb] you can’t be tested for being too subjective. ”
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