Bitcoin has not recorded a low point on the daily chart since early September 2020. To give you an idea on how big this is last time we saw the price rise $55577 (600%) over 228 days. There are a few things to consider before you put on an epic 25x leverage trade... This new low has not reached its lowest point and BTC is still in a down trend. So how do we find the low point? One of my favourite tools for finding bottoms and tops is John Ehlers early onset trend indicator.
Example of Early Onset Trend:
Let's take a look at September 2020, the last time BTC hit a market low on the daily charts. From the time the indicator bottomed out it took 5 days to create this low and confirm an uptrend. To make this low bitcoin dumped aprox $2000 (17%) over 2 days. This was a very clean pullback and saw BTC fly out the gates.
Previous to this was March 2020, a scenario much more similar to our current conditions. BTC dumped down hard (172%) and took 25 days in total to create this low point. During this time there was a fakeout 10 days into the "low". Using another indicator such as the awesome oscillator, a margin trader can avoid getting "rekt" by entering a trade after the up trend is confirmed. Entering a trade from an indicator such as this is not recommended as the chances are you will be entering at a "high" just before a dip so another indicator such as the Stochastic RSi is needed to get a perfect entry. Waiting for the Stochastic to bottom out will result in a trade that will see very little red and jump straight into profits.
Example of how I enter trade:
There are 2 price targets to watch out for and both happen to be major support lines. 43k and 30k. Either of these could be our next bottom. If you are a "hodler" then either of these points is a great place to buy in but if you plan to margin trade make sure you wait confirmation before placing that epic trade.
Example of Early Onset Trend:
Let's take a look at September 2020, the last time BTC hit a market low on the daily charts. From the time the indicator bottomed out it took 5 days to create this low and confirm an uptrend. To make this low bitcoin dumped aprox $2000 (17%) over 2 days. This was a very clean pullback and saw BTC fly out the gates.
Previous to this was March 2020, a scenario much more similar to our current conditions. BTC dumped down hard (172%) and took 25 days in total to create this low point. During this time there was a fakeout 10 days into the "low". Using another indicator such as the awesome oscillator, a margin trader can avoid getting "rekt" by entering a trade after the up trend is confirmed. Entering a trade from an indicator such as this is not recommended as the chances are you will be entering at a "high" just before a dip so another indicator such as the Stochastic RSi is needed to get a perfect entry. Waiting for the Stochastic to bottom out will result in a trade that will see very little red and jump straight into profits.
Example of how I enter trade:
There are 2 price targets to watch out for and both happen to be major support lines. 43k and 30k. Either of these could be our next bottom. If you are a "hodler" then either of these points is a great place to buy in but if you plan to margin trade make sure you wait confirmation before placing that epic trade.