Market panic sell off at current strong uptrend support.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
I was not expecting it to happen so fast, so it's even a better scenario.

After 9 days market is panicking again, but this time in the opposite direction. Price is now $351, with a big spike down to $346. There could be still some more room to panic sells to retest the support even lower, at $340 or even $335, but that's not guaranteed.
Take into consideration that Chinese support shows a bit lower, that's why you should look at their graph also to check if support is holding or not.

In my opinition at this time market is not being rational and now there is too much selling pressure and too fast. At this level support is strong, so that's a good opportunity to open long positions with a great risk/reward ratio and a tight stop loss below support.

As it is still early I'm not using any leverage at all, just normal long. Because I want to play it safe and I don't want to get caught in a bigger downwards panic pressure in case support breaks.

Ask side is really thin now because all the people is directly panic dumping. As market will start to cooldown, shorts will start to finally close their positions and could easily bounce to $370, that could also lead to more short stop loss triggering and driving the price up to $385.
Another option is only bouncing to $360 and then market panicking back again and breaking support, so be careful to watch out for momentum.

Also support is way stronger than 9 days downtrend triangle, that's why unless there is extreme extra selling pressure triangle should break upwards.

I started to build some positions at $347, so let's see how this trade plays.

Good luck!
Good chart. In hindsight you were the first on Tradingview to point this out!
+1 Reply
Maddie ChartArt
very funny ;p
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