Bitcoin might retrace above 9000 before the next dumpHello all,
In my last posts I mentioned that BTC could go to 10.000 and above after the breakout from a triangle. Also, I mentioned that at those high prices it is not a good idea to buy because the price has gone too far already. I did not expect such a strong dump though. My stop-loss was triggered at 9100 and my entire position that I entered at around 7200 was closed. Let's look where to look for the next trading opportunity.
After almost two months of a strong bullish momentum, it seems that the rising trend has come to an end.... for now. Was the massive red candle a confirmation for a sell? I would say yes and no. If you are a risky trader then you can consider selling at these prices as price can continue falling without any pullback. However, this is not my strategy because the risk-reward is not very good for me. I am looking for a retracement back to 9200 and only after that (if it happens) I will sell with stop-loss around 10.000 and targets around 6.800 and below. Thus, it gives me a risk-reward ratio of 4:1 and above. So, if you are patient enough, just wait for a consolidation above 9000 and look for a bearish confirmation before selling.
Next buying area for me is 6200-6400 (maybe in mid June). Why? First of all, this is a 0.618 fib level from 4.000 to 10.000 and it sounds logical for the price to touch it before another bullish run. Second, and probably more tricky one, I am sure a lot of traders will consider the drop below 6.600 as the confirmation of bearish trend. Here we actually want to buy.
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GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2% of your account per trade
2. Look for a Risk-Reward Ratio of at least 2:1
3. Always use stop-loss
4. Do not FOMO
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so, please do not follow it if you are in doubt. DYOR!
