Bitcoin Bulls: Now’s the Time to Buy Low and Profit High!
• The current bearish trend in Bitcoin has created a short-term range from $29.8k to $31.5k, with the potential for an upward reversal after a retest of the lower range-boundary at $29.7k-$30k.
• Short-term indicators such as RSI and CMF are showing signs of waning bullish momentum, while the DMI indicates there is no strong trend currently in progress.
• Investors should wait for a retest of the $29.7k-$30k area before entering into a long position, with a stop-loss below the $29.2k mark set to invalidate the range idea and target set at the range highs at $31.5k.
Why Bitcoin Bulls Should be Excited about Price Drop Below 30K
Formation of Range
The short term range formed on Bitcoin extended from $29.8K to $31.5K giving traders many opportunities to capitalize on it’s price action. When BTC surged past 31K, it was likely due to liquidity grab before prices reversed their trajectory and headed towards lower range boundary once more; at press time BTC was trading around 30.4K level and RSI showed waning bullish momentum along with CMF declining sharply but still staying above +0.05 indicating capital inflow in market . DMI also indicated that there is no strong trend currently in progress hence reinforcing idea of formation of a range .
Investors have an opportunity here as they can wait for retest of lower end i:e 29.7K -30K area , setting stop loss below 29/2 K which would invalidate idea of formation of this range . Target here is set up at higher end i:e 31..5 K levels where investors can exit .
Advantage for Long Term Investor
Long term investor need not worry about price drops as trend remained in favor bulls , however they need patience for reaping profits through entry and exits points over short term frames .
At present situation , investors have an opportunity to enter into long position by waiting for retest of lower end 29/7 K -30 K area , setting stop loss below 29/2 K which would Invalidate idea Of forming this particular ranges ; target being set up at 31..5 K levels where investors can exit safely !
The information presented does not constitute financial, investment, trading or other type Of advice and is solely writer’s opinion .