BTC/USD 2W (Bitstamp) Strong support areas to keep an eye on
Updated
As you probably already know, Bitcoin is Halving in 2 months (Estimated Time of Arrival= 11 May 2020 13:55:03).
BTC block mining reward halves every 210'000 blocks, the coin reward will decrease from 12.5 to 6.25 coins.
This will reduce inflation rate per annum from 3.66% to 1.80% and will have massive effect on Supply and Demand .
I am buying for long term in that green zone at 7.3-8.2K, could also be good for Longing with low leverage (3x-5x).
Moving Average is looking good as long as MA50 is holding Price Action, plus Relative Strength Index has support on RSI45.
But keep in mine that if the first support zone is broken we would probably visit the lower one near 5-5.55K so better use proper Stop Loss!
I drew some old Trend Lines here :
- from 2.22 USD on 10 Oct 2011
- from 198.12 USD on 17 Aug 2015
- from 751.34 USD on 02 Jan 2017
- from 1830.00 USD on 03 Jul 2017
BTC block mining reward halves every 210'000 blocks, the coin reward will decrease from 12.5 to 6.25 coins.
This will reduce inflation rate per annum from 3.66% to 1.80% and will have massive effect on Supply and Demand .
I am buying for long term in that green zone at 7.3-8.2K, could also be good for Longing with low leverage (3x-5x).
Moving Average is looking good as long as MA50 is holding Price Action, plus Relative Strength Index has support on RSI45.
But keep in mine that if the first support zone is broken we would probably visit the lower one near 5-5.55K so better use proper Stop Loss!
I drew some old Trend Lines here :
- from 2.22 USD on 10 Oct 2011
- from 198.12 USD on 17 Aug 2015
- from 751.34 USD on 02 Jan 2017
- from 1830.00 USD on 03 Jul 2017
Trade active
The weekly candle closed inside both parallel channel (bullflag) and stronger support area (pink one), that is a positive sign! I'll keep buying the dips on Spot (no leverage).Note
Isn't that beautiful? Price action got rejected at channel resistance and ex-support area (green one).Note
Rejected again on the same green zone, if you entered on Spot (no leverage) inside the pink zone you would be with +37% profit right now!Trade closed: target reached
If you entered on Spot (no leverage) inside the pink zone you would still be with +76% profit right now!Got rejected several times on the green area acting as strong resistance.
That's why retesting the 8200-7300 zone is highly probable to keep going up afterwards.
I will let several buy orders there on Spot and even Margin with very low leverage (3x sounds good)
Redrawing the bull-flag bigger, we can see that it would be a decent pull-back.
Entry Range= 7794.63 - 7254.63 would be a nice mid-term set-up!
Note
Let's have a look back at Mar 11, 2020One year ago I published a long-term LONG for Bitcoin pointing out 2 critical support areas:
8.2-7.3K and 5.5-5.0K
As we all remember, the 1st one broke down but the 2nd one turned out to be the perfect demand zone!
Of course that wick down to 3850$ was not planned and freaked out us all back then.
But then it rallies up 58354$ printing a max profit of +1067% from lowest entry (5000$).
This reminds us once again how important it is to be very patient and always stick to the plan!
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