Buy The Dip - Trading 101

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
In this analysis I take you through the narrative of price action in the last three months. I suggest to enter a long position here on BTC with a 19% upside potential.

All information can be found on the chart.
Trade active: Wow, what a crazy volatility we’ve witnessed yesterday. Many of you must be in doubt whether to FOMO sell or not. Obviously with a price racing to the bottom, you want to get out as quickly as possible.

Wrong. Buy low and sell high, the price is low folks. This is where you buy, and here’s why I think we’ve seen the temporary bottom:

a) The 1-ATR specifies the volatility for each candle. After we have seen some extreme volatility in the candles yesterday of values even around 700, it looks like the volatility is back to normal again.

b) Besides the volatility itself, we can have a look at 14-RSI which describes the momentum. After seeing values of extreme overselling, reaching as low as below 20, we now see that the RSI has returned to a very neutral position of 45.

c) The fibonacci retracement shows that the price has found support exactly inside the golden pocket. This is an area where price traditionally reverses, something that we can witness on BTC/USD right now.

I suggest to buy this dip and go long for a great profit potential.

Comment: Here you can find the continuation of this idea:

Basically I toned down the bullishness a little bit as we have seen that the price did not bounce that quickly. Even though it's in line with this idea I still extended the channel to give BTC some more time to consolidate before we start the next bullish uptrend.
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That's not the whole dip, buddy.
+16 Reply
Trading-Guru zappelfilip
@zappelfilip, Hi ZappelFilip, to make for a more constructive discussion, what do you base this on?
+2 Reply
filipeepv Trading-Guru
@Trading-Guru, well i posted a chart with a possible inverted H&S if it closes above 10400 today, so lets c, if its up I think it will move up, if it closes below I think we can retest 7000 USD levels
We may see a slight rise but in reality it is a strong downturn
+10 Reply
@Saeed966, How? If the Stock Market is now backed by the Federal Reserve with unlimited amounts of quantitative easing.
+2 Reply
That's a risky one...
+9 Reply
tr152015 alanmasters
@alanmasters agree it’s a bit worrying bitcoin failed a bit again after hitting just over the 12 mark and even still being that the market is down as a whole (including stocks etc.)
+1 Reply
Trading-Guru alanmasters
@alanmasters, Hey alanmasters, I feel really humbled to receive a comment from you! You were an inspiration for me when I started the Trading-Guru account. In fact, you also have the whole guru-vibe to your channel.

On the content, it's definitely risky trading a falling knife. It's easy to get stopped out by a sudden wick down, or get a second or third large move before the price found the real bottom. I would not go all-in either, but I personally joined this trade as well. I think there is great upside potential (19% as you can see from the chart), so I am willing to try and enter a few times and lose a couple % when I am wrong each time.

What do you think?
+1 Reply
alanmasters Trading-Guru
@Trading-Guru, Thanks a lot for sharing... I am happy to read this.

I agree with you, there is potential for a bounce here and we can definitely trade with the right management and plan.

Keep up the amazing work you are doing... Your contribution to the community is highly appreciated.

+1 Reply
Trading-Guru alanmasters
@alanmasters, 🙏
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