BTC Starts Correction. Now let’s find suitable entry points!
As predicted, BTC failed to make new highs, stopping just short of $19,500. The coin has now started an overdue correction. Now it is essential to find where it will bounce back so we can enter once again!
Support Levels
Finding suitable entry points goes hand in hand with finding the right support levels. The first support level stands at $17,000, where BTC made a small comeback at the start of this correction. This level is important as it was the last main resistance in Bitcoin's path to the all-time high. However, due to Bitcoin's outstanding growth from $10,000 to $19,500 in just two months, the correction is more severe and has already stepped past this point!
The next support level stands at $16,000. This level came into prominence this year, as it held Bitcoin from pushing higher repeatedly. This level is likely to be hit, as after a strong bull run, a mild bear market is to be expected. Currently, Bitcoin has bounced near this level twice.
Lastly, we have the $14,000 support level. This level is critical as it was the highest price we hit following the 2017 bull run until November 2020. It also acted as a major support holding Bitcoin above it throughout much of 2018. BTC may head to this level in case of a "severe" correction. Yes, Bitcoin can go lower. However, due to the strong momentum, optimism, halving, and entrance of institutional investors, the price will likely hold above $14,000.
After bouncing on one of these levels, we are likely to see revisit the all-time high. However, it may take a while before we break it.
Strategy
The 5 and 200 EMA crossover is among the best strategies on the 1h chart. With a 0.01% commission, the strategy would have made a stunning 415% return from 2019 up until the present. While backtesting is not the same as live trading, if you backtest for long enough and throughout different market conditions, then you will likely see similar results in your live trading. Therefore you can also use this strategy as your next entry point.
Support Levels
Finding suitable entry points goes hand in hand with finding the right support levels. The first support level stands at $17,000, where BTC made a small comeback at the start of this correction. This level is important as it was the last main resistance in Bitcoin's path to the all-time high. However, due to Bitcoin's outstanding growth from $10,000 to $19,500 in just two months, the correction is more severe and has already stepped past this point!
The next support level stands at $16,000. This level came into prominence this year, as it held Bitcoin from pushing higher repeatedly. This level is likely to be hit, as after a strong bull run, a mild bear market is to be expected. Currently, Bitcoin has bounced near this level twice.
Lastly, we have the $14,000 support level. This level is critical as it was the highest price we hit following the 2017 bull run until November 2020. It also acted as a major support holding Bitcoin above it throughout much of 2018. BTC may head to this level in case of a "severe" correction. Yes, Bitcoin can go lower. However, due to the strong momentum, optimism, halving, and entrance of institutional investors, the price will likely hold above $14,000.
After bouncing on one of these levels, we are likely to see revisit the all-time high. However, it may take a while before we break it.
Strategy
The 5 and 200 EMA crossover is among the best strategies on the 1h chart. With a 0.01% commission, the strategy would have made a stunning 415% return from 2019 up until the present. While backtesting is not the same as live trading, if you backtest for long enough and throughout different market conditions, then you will likely see similar results in your live trading. Therefore you can also use this strategy as your next entry point.