The oversold stochastic RSI at support of $10,000 intrigued me to possibly enter a BTC long.
The rumors and negotiations of another stimulus package presented an idea to me that BTC's value would increase as the Federal Reserve printed more USD. Simple economics reveals that an increase in supply of a currency mean less purchasing power - inflation.
Bitcoin has a fixed supply. This means that it is impossible for Bictoin's purchasing power to decrease because of an increase in the number of Bitcoin's available.
With this concept, I see BTC as an inflationary hedge or a protection against inflation.
All of this coupled with the oversold stochastic RSI and a perfect bounce off of the $10,000 support led to me enter a long position at ~$10,250 the week of September 14th.
Looking back at the 1W BTC chart reveals a few areas of support and resistance. For me, I chose $12,000, ~$13,800, $16,000 and obviously the ATH of ~$20,000.
Another tool I used for this chart and trade was a fibonacci extension from the ATH price of ~$20,000 from December 2017 to the ~$10,000 support bounce that led to me enter the trade.
It occurred that that the 0.318 fibonacci extension was the $13,800 resistance and the almighty 0.618 extension was the $16,000 resistance.
I closed this long at ~$15,500 due to the overbought stochastic RSI and the approach towards major resistance at ~$16,000, 0.618 fib. ext.
Unlike many traders I use few indicators and only one timeframe usually. There is no standard formula for success. Whatever works for you may not work for some others and vice versa.
Currently, I'm in no position and waiting for another backtest of ~$15,000 or a continuation through ~$16,000
The rumors and negotiations of another stimulus package presented an idea to me that BTC's value would increase as the Federal Reserve printed more USD. Simple economics reveals that an increase in supply of a currency mean less purchasing power - inflation.
Bitcoin has a fixed supply. This means that it is impossible for Bictoin's purchasing power to decrease because of an increase in the number of Bitcoin's available.
With this concept, I see BTC as an inflationary hedge or a protection against inflation.
All of this coupled with the oversold stochastic RSI and a perfect bounce off of the $10,000 support led to me enter a long position at ~$10,250 the week of September 14th.
Looking back at the 1W BTC chart reveals a few areas of support and resistance. For me, I chose $12,000, ~$13,800, $16,000 and obviously the ATH of ~$20,000.
Another tool I used for this chart and trade was a fibonacci extension from the ATH price of ~$20,000 from December 2017 to the ~$10,000 support bounce that led to me enter the trade.
It occurred that that the 0.318 fibonacci extension was the $13,800 resistance and the almighty 0.618 extension was the $16,000 resistance.
I closed this long at ~$15,500 due to the overbought stochastic RSI and the approach towards major resistance at ~$16,000, 0.618 fib. ext.
Unlike many traders I use few indicators and only one timeframe usually. There is no standard formula for success. Whatever works for you may not work for some others and vice versa.
Currently, I'm in no position and waiting for another backtest of ~$15,000 or a continuation through ~$16,000
