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Rich Dad_ author R. Kiyosaki Forecasts Bitcoin Surge to $120k, Declares End of USD
Robert Kiyosaki, author of _Rich Dad Poor Dad,_ has advised people to consider assets like Bitcoin as a hedge against the potential decline of the US dollar as the global reserve currency. He suggests that the heads of state from BRICS countries (Brazil, Russia, India, China, and South Africa) will announce a gold-backed cryptocurrency at their upcoming summit. This move, along with other countries joining the coalition, could lead to inflation and a decline in the US dollar. Kiyosaki recommends investing in gold, silver, and Bitcoin, predicting that Bitcoin_s price will reach $120,000 next year. Fibonacci retracement and extension levels are widely used technical analysis tools in the world of crypto trading. They are based on the Fibonacci sequence, a series of numbers in which each number is the sum of the two preceding ones (e.g., 1, 1, 2, 3, 5, 8, 13, 21, and so on). Fibonacci levels are used to identify potential support and resistance levels, as well as possible price reversal points in the cryptocurrency market.
Traders use Fibonacci retracement levels to gauge potential areas of price reversal or pullbacks during an uptrend or downtrend.
The primary Fibonacci retracement levels used in trading are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels are drawn on a price chart from the high point to the low point during a downtrend or from the low point to the high point during an uptrend.
When the price of a cryptocurrency is in an uptrend, traders look for potential support levels at the Fibonacci retracement levels. Conversely, during a downtrend, these levels are examined for potential resistance areas.
Fibonacci extension levels are used to identify potential price targets beyond the standard price range. Traders use these levels to project possible future price movements when a cryptocurrency is in a strong trend.
The primary Fibonacci extension levels used in trading are 127.2%, 161.8%, 261.8%, and 423.6%. These levels are drawn on a price chart from a significant low point to a significant high point or vice versa, depending on the trend direction.
Fibonacci extension levels are valuable for setting profit targets in a trade. When a cryptocurrency is trending strongly, traders may use these levels to identify potential price targets for taking profits.
Limitations.
Fibonacci retracement and extension levels are not foolproof indicators. They are tools that provide potential areas of interest based on historical price movements. Market dynamics can change, and cryptocurrencies are influenced by various factors, including news events, market sentiment, and macroeconomic trends.
Like any technical analysis tool, Fibonacci levels are best used in combination with other indicators and analysis methods. They should be considered as one part of a comprehensive trading strategy that includes proper risk management and entry/exit rules.
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EDUCATIONAL MATERIAL
How To Survive the Crypto Market FUD Storm: A Guide to Managing Emotions While Trading
Crypto trading can be a rollercoaster of emotions, especially if you are a beginner or trading on leverage. These emotions cloud your judgment and can ruin your trades. In this article, CoinMarketCap Alexandria dives into the best ways to keep these emotions in check to boost your trading success.
While trading – regardless of the market – can be nerve-racking on its own, crypto markets are notorious for their volatility. They move around erratically, and the lower the market cap of your coin of choice, the less predictable the moves get. A single tweet from Elon Musk can move the price of Doge significantly, not to mention what happens when bad news hits the press.
Just look at the aftermath of the FTX collapse in Nov. 2022. The bear market has taken its toll for over a year, and all of a sudden the second-largest derivative exchange collapsed. FUD spreading across the industry, people panic selling and losing a lot of money – a perfect example of emotions involved in trading.
Meanwhile, those with a level head were able to use the opportunity to their advantage, buying coins while others were running for the exits.
The Importance of Managing Trading Emotions
If you want to be successful in trading, you need to keep your emotions in check. Fear, greed and FOMO can mess up your decision-making ability, leading you to irrational behavior and costing you a lot of money. Your emotions may also cause you to look for information that confirms your pre-existing biases rather than seeing the reality at hand.
By managing your emotions, you put yourself in a position to trade objectively based on an objective analysis – which is bound to positively affect your profitability. Let's dive into how you too can manage your emotions, and boost your trading success.
Recognize Emotions for What They Are
The first step towards managing (and mastering) your emotions is to recognize the emotions for what they are, and learn what they are telling you. For example, fear and greed are some of the most common emotions in trading, bearing responsibility for the majority of trading mistakes.
Recognizing these emotions and understanding them completely will help you manage them. Fear of missing out is common when the price is at the most optimal level to buy, but it can also suggest being overexposed. The next time you experience FOMO – analyze where the emotion may be coming from, and it will tell you what to do next.
Similarly, greed often happens when you are in a winning trade and have made significant profits – it will make you want even more. Oftentimes, this is precisely the moment to take profits, as the risk of losing profits exceeds the potential for further gains.
Essentially, studying your emotions and understanding them deeply will provide you with meaningful information about the market, the kind of information you can capitalize on – especially when you consider the fact that most people might be feeling that emotion in the markets. Time to beat the competition! 
