Hey guys, I wanted to create this post to illustrate two areas where I would buy Bitcoin if I was interested in buying it (only reason I'm not is because I believe there are multiple other cryptos that have a better long-term future). You can see where these buy areas are in the image below.
I believe Buy Area 1 is most likely going to be triggered first, because price crashed out of the expanding triangle and hasn't been able to get back inside despite testing the lower trend line. Also, fundamentally speaking, the first CME Bitcoin Futures contract will expire on the 26th, so in a week's time. I do see the big institutional traders who went short on Bitcoin at just under $20,000 (when CME futures started) orchestrating some sort of panic through news or whatever to make price drop to around the $8,000 psychological level to maximize their profits. If I was buying Bitcoin at this level I would wait for price to stabilize within the $8,000 to $8,500 zone to be sure that it won't just keep going lower.
Of course, I could be totally wrong about that and Buy Area 2 might come into play first. To buy within Buy Area 2 I would need to see a strong bullish close back inside the expanding triangle pattern, and for multiple closes within this pattern really. I wouldn't buy as much at Buy Area 2 as I would at Buy Area 1, simply because you get more Bitcoin for your money at Area 1 and also even if price closes strongly within the expanding triangle pattern again, until the CME futures contract expires I would still not be as confident about price resuming it's overall rise.
So what do you guys think, will Bitcoin recover before the CME and not be affected much by it? Or do you think the CME Futures expiry on the 26th of this month will have a big downwards effect on price short-term? Let me know in the comments below!
As always, if you follow me I will follow you back! Thanks for reading.
Legal Disclaimer: This is just my analysis and not to be taken as professional financial advice. Do your own research beyond what you read in my blog posts and make your own decisions based on your beliefs about what to invest your money in.