GOOD AFTERNOON STEEMIT,
At the risk of sounding like a broken record, from a technical analysis perspective, there is absolutely no need to panic about the drop in Bitcoin.
Flicking through headlines in the junk news might have you believe that Bitcoin is worthless and panic sellers have dumped the asset to zero. But this couldn’t be further from the truth!
Stop, take a deep breath and look at the way that price action is unfolding in front of your eyes.
Let’s start with a higher time frame chart:
BTC/USD Daily
As you can see on the daily chart, Bitcoin is still above daily trend line support from as far back as 2012.
As long as this level is holding as support, price is still in a bullish trend and this is simply a short term trend before resuming on the higher time frame and making new highs.
Now I know Bitcoin has smashed through plenty of short term support/resistance levels that we’ve spoken about on it’s way down, but for some further reassurance, let’s zoom into an intraday chart and take a look at the price action:
BTC/USD Hourly
This is a chart featuring the latest support/resistance level that I was trading.
You can see the green arrow marks the Bitcoin long trade that I took when price retraced to short term resistance turned support. The risk:reward was there and we smashed an easy automatic 1:3 from the bounce.
After the level broke down again, you can then see the opportunity that Bitcoin gave you to cut and reverse if you were so inclined. It’s just the exact same setup, where a higher time frame level holds, then price retraces to retest a short term area of previous support turned resistance for you to enter off.
As you can see, there is absolutely no panic selling going on and price is simply stepping between support/resistance levels, within a higher time frame bullish trend.
I implore you to not get caught up in the emotionally driven hype that you and the people around you are no doubt experiencing. Sit tight, take a look at your charts and make a rational decision to not puke the lows.
Best of probabilities to you.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
