How to find the bottom of Bitcoin?
By Yuriy Bishko Updated November 21, 2021
A) Let’s analyze the best situation, which really shows that this is the bottom, and from here the price will turn:
What are the preconditions for opening buy positions?
– A sharp drop, as in the example of March 2020, during which Bitcoin fell by almost 60%.
– Significant growth, during this fall, more than 100 thousand bitcoins were traded on the Binance exchange, which is several times more than the fall in May 2021, when bitcoin fell from 60 to 30 thousand dollars.
– Mass liquidations, in the chart below you can see how during this fall market players recorded losses amounting to 1.38 billion dollars.
Watch NOW on Youtube Top 3 ways how to identify bottom of Bitcoin.
B) Now consider the second example of how to find the bottom of Bitcoin:
What are the preconditions for this option?
– A sharp, strong fall
– Long consolidation
– Squeezing to the level
As you can see in the example, in the chart above, bitcoin was adjusted by 50%, after which there was a protracted consolidation, and direct squeezing to the top level of this range. As a result, there was a breakout and a strong increase from $4,200 to $14,000.
C) And the third option, the breakout of the trend line, which will help you buy at the bottom:
Preconditions for this option:
– Inclined trend line
– Every downward move we see, we additionally see an increase in volumes.
– Buy on breakout (it is safer to wait for the retest)
If you see that BTC created such a trend level, in addition at the bottom of each fall the volume increases significantly, it is a good opportunity to buy after the breakout of the trend line.