Bitcoin Support Levels and Buy Zones - Low Risk Strategy

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar

So here's a simple strategy based on pure fundamentals of support zones.

BTC has broken below support of 10800, and it's currently trying to break back to the upside above 11,000. If this is successful, I assume there would be selling action between 11200 and 11600 and we will fall back down below 10800 and retest bottoms.

I'm not expecting the bottom of 9700 to hold.

However, market sentiment seems to be short-term bearish , but long-term bullish . So many traders are buying below 10500 based on the previous low of 9700. So I believe we will gradually go down, rather than have a large, quick sell-off, as there will be more buy support than normal.

This would be a great time to scale into your long positions. From 10,000 downwards. There is literally no support until approximately 7500, so we could potentially get there. If we do, I would start buying big. At this stage, we may start seeing panic selling and have a sharper fall to support around the 4500 level. If this is the case, I would go all in at this time.

This is a relatively low-risk strategy, scaling in as we lower in price with the assumption that in the long-term we will bounce back up above 11,000.
i can see the concept but somehow, excuse me, it looks like buying into falling prices with a potential crash. rather buy after a bullish scenario is possibly unfolding, which seems enormously far to mee if we fall under 8k. i would rather say that at this point the real panic sells are beginning and then god alone knows where it stops.
@ncx, Thanks for the comment. I agree no one knows how low we can go. That's why we scale in small below 10,000. We can also sell the bounces a long the way and re-buy in at lower prices. I see strong support at 7500, and going by market sentiment it seems that a large number of traders are expecting a rebound and bottom between 7000-9000, so I think there will be a lot of buyers and so could get quite volatile with big buys and big sells in the space... so will have to monitor sentiment as it progresses.

If we drop below 7500 it could get very ugly as many (if not most) would not be expecting it to and panic may set in. At this time we would have to reassess what's going on. But for now I think this strategy is sound. It's a long-term strategy with a view bitcoin will settle and grow above 10,000 again in the future.

I'll keep the post updated with my thoughts as we progress.
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