Bitcoin Weak Price Action, but I am Starting to Look Long
Updated
Bitcoin had pullback over 40% from the peak on November 10th, 2021. Daily bounces continue to make lower highs and lower lows. The macro sentiment is extremely bearish both with stocks and crypto as the market anticipates the Fed to raise interest rates given the recent inflation numbers. But, as long as $28,750 holds, we are technically still in a monthly bull trend. We are in a very volatile environment with extreme fear, and prices can go lower. And I don't know whether or not we are entering a bear market.
However, I am confident that we will likely see at least a weekly bounce. Even though price action has been extremely weak, the volume has been declining. If I were looking to enter a swing position, I would enter a small position at these levels with intentions to scale in down to 35k.
However, I am confident that we will likely see at least a weekly bounce. Even though price action has been extremely weak, the volume has been declining. If I were looking to enter a swing position, I would enter a small position at these levels with intentions to scale in down to 35k.
Note
The decreasing volume is more obvious when you zoom out to the weekly.Note
Another reason why I would pick this spot as an initial entry point is that we recently just broke a significant local support level and did not get a cascading flush lower. For me, this means that the probability and risk of margin longs getting stopped out and shorts piling in decreases significantly.
Trade active
Got an even deeper flush. Not an easy trade to be in, have to manage it carefully and ladder in slowly. If you are buying in this environment, you have to make sure you have enough funds to buy in case it goes deeper.Trade active
Bounce happened but isn't that strong. Should be scaling out the position here in case there's another leg down so you can buy back lower and lower your cost basis.
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