Take a look at this chart. That’s how the 50 days range looks.
Many of you ask yourself and us about:
- Will Bitcoin drop to 15 – 18k?
- When will the bull run start?
We have next scenarios at this moment
1. Bearish Trading plan.
Bitcoin, broke down a trend line
If that breakdown is true – that means next powerful support is $30 000 because it’s a powerful level and a lot of people will try to buy BTC at that area.
Also, at 30k we have big size in DOM nearly 700 BTC
700BTC *30k = $21 000 000
That’s Binance’s DOM ONLY
If BTC drops to 30k what is our next plan?
A) I think BTC will continue going down if the price hits the 30k area and continues squeezing down.
B) BTC could bounce from a range border if it creates a re-low and MEssive volume increase. I call it false break out (Lesson about it https://youtu.be/65FWc78g_Q8 )
Take a look on previous examples how price bounced during such pattern
BTC dropped and re-low with a massive volume increase. After the price bounced up by 25%.
2. Bullish Trading Plan (in what cases we can Buy BTC)
At the moment I see several options for opening a position:
A) The first option, if the price falls quickly, updates its lows, gathers liquidity to buy, with a strong increase in volume, it is very likely that the price received enough liquidity and already from there will go up. As an example, the last time the price updated its lows, Bitcoin rose 25%.
Additionally, the infographic in this picture can demonstrate the situation quite well.
It shows the amount of net profits or losses of people trading bitcoin. As you can see that at the turn, traders recorded 3.45 billion losses. That is, those who bought Bitcoin at 60K – 55K – 50K they recorded losses, but the price did not fall further. This means that they sold their coins and someone willingly bought them back at a 55% discount, if it happens again – this is a good signal that we have a strong buyer, redeeming the mass sale.
B) The second option, if Bitcoin begins to tighten and consolidate at the inclined trend line, the option to buy on a breakdown, or even better after the breakdown and retest the sloping trend line, as support, as recently quite a large number of traps appeared.
Ethereum, what to do? Where to buy?
Ethereum has almost a similar situation as Bitcoin, as all altcoins have a direct correlation with the main cryptocurrency and move 90% behind it.
When is it better to buy Ethereum?
А) The first option to buy if ETH quickly updates the key level of $1733, with a strong increase in volume. This will mean that the price got enough liquidity and there will be a strong pullback, last time after such a fall the price went up by 40%.
At the moment the price can roll back, test the line marked on the chart as resistance and go on the first scenario!
B) The second option is if price creates an inclined level such as the one shown in the chart below. As an example, last time, after the breakout, the price went up 30%. Therefore, this is a good enough opportunity to buy.