Buy The Dip - Trading 101

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.

Trading-Guru

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.