BITCOIN TRADING ANALYSIS 03/06/18: Buy the dip?

in bitcoin •  7 years ago 

Hello and thanks for checking out my post, welcome!

So lets have a look at the BTC daily chart below. As you can see it has formed a double top where the price has rejected the 11600 resistence line and has started to retrace, most likely it will continue to retrace below the 20 moving average.
I am currently bullish on BTC after it broke the important descending trend line, unfortunately it didn't make a higher high after that but it did make a higher low bouncing off the 9300 support line as you can see in the chart below.

So now looking at the BTC 4 hour chart you can see that there would have been a nice little trade setup as the price broke below the 20 moving average. However, as I mentioned before I am bullish on BTC therefore I am looking for a good buying setup, for this I will check the Fibonacci Retracement tool to see some good retracement levels.

As you can see on the 4 hour chart below I have mapped out my Fib Retracement from the previous low of 9300 to the recent high of 11600 and I am looking for the price to retrace to the 51% area. This is because I am looking for the price to make a higher low indicating an uptrend. However if the price does break this, then the next key support area would be the previous low of 10300 or 61% range on the Fib retracement. Either way I will continue to monitor the price and only enter a trade once I see a good enough buying setup.

I will keep you guys updated, stay tuned!

Andrei

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Hey, Do you think its worth it to HODL Bitcoin at the moment? Followed you too

Hi there, I think Bitcoin is cheap at the moment so if you already have some Bitcoin I would HODL it in the long term as an investment. With this post I was illustrating a short term swing trading strategy where I am looking to buy on the pull backs on the up trend.