Bitcoin in retreat but support nearby
No matter what you trade, dynamic support and resistance model shows pretty accurate “price field” and major levels. Bitcoin is no exception – check below daily chart. We expect price will bounce from bottom border. BUY Limit @ 6670 order is a sleeping entry. Market orders can be placed respectively using scaling method – half or third of exposure at current price levels, the rest to be accumulated on the way down till 6670 price level.
I am not big fan of “buy and hold” strategy for cash products – especially bitcoin. If price action does not confirm your guesstimates, then follow your risk management rules !
Look at below weekly chart. Technically bitcoin can go all the way down to $ 2100 !! Obviously, bitcoin is not an investment instrument… rather speculative asset. Conclusion is simple – if price continues to slide below previous lows, at some point it is time to quit.