One of the best ways to trade cryptocurrency such as Bitcoin, is by spotting support and resistance points.
After all, if your coin continues to test a specific support line, and continues to bounce, it may be a good idea to buy at each test. Bitcoin has now tested its “line in the sand” for the seventh time.
History of Support for Bitcoin
For example, in July 2018, Bitcoin fell to its lower Band around $5,920. W%R was below its 80-line. Shortly after, BTC rallied to $8,374. In late March 2018, Bitcoin fell to its lower Band at $6,000. W%R was below its 80-line. Shortly after, BTC rallied from $6,000 to $10,000.
In February 2018, BTC fell to its lower Band at $6,000. W%R was below its 80-line. Shortly after, BTC rallied from $6,000 to $12,000.
We can clearly see considerable support in the same area over and over again.
As of today, it’s back in the buy zone, in our opinion. As long as it holds, we could see another near-term rally at a higher level. Of course, it’s a wait and see situation at the moment.
The idea is that you buy at this support line, then sell on the bounce, and repeat.
Plenty of Reasons to be Bullish
At the moment, there’s a good amount of fear in the markets.
The Dow Jones, S&P 500, and the NASDAQ are all soaked in red following the bloodbath. It’s even spilled into the cryptocurrency space. However, we must consider there are plenty of reasons to be bullish on cryptocurrencies like Bitcoin, in the long-term.
For one, we may be nearing the approval of a Bitcoin ETF.
And two, industry heavyweights believe in its future. Tim Draper for example, predicts that the market cap of cryptocurrencies will increase 400 times over the next 15 years to $80 trillion. “The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here,” he says.
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