This is an idea I have been waiting months for in regard to Bitcoin. Since our all-time high at $64854, Bitcoin appears to have put in a 5 count wave to our low at $28805 which gives us a common Fibonacci retracement of X shown on the chart.
At first glance when looking at the current price, we find ourselves hovering just above the level I have been waiting on and that is the .236 Fibonacci level of THE ALL TIME HIGH. That is very important to understand because that is what separates this from just being a quick swing trade. Instead, this is a trade that could be poised to smash all time highs and go well beyond. Buying at the .236, also known as the inverse of the .786, can be the trade of a lifetime when spotted right away in assets such as Bitcoin.
The daily candle just closed as of writing this and the price closed strongly. To begin the new day, look for a backtest of this .236 fib level at $37312 approximately. This will be an area where limit orders will be put in for longs. I would personally have a small long beginning well above the $37312, and ladder in more and bigger longs that go lower and eventually all the way to our rock bottom price point at the exact .236 fib.
Keep in mind for those who are new that it is not the least bit strange for the price to wick below our level briefly and still be bullish. However a candle close on the daily BELOW this .236 would put us back in a no trade zone. So for this reason we always use stop losses, but because we have a beautiful candle close above this level already, I would expect the price to give us an opportunity to wait on a daily candle close below the .236 before the need to close our position occurs. That is if the support truly fails.
A backtest of the level from where we currently are would be a near 5% dip. It is wise to wait on this backtest before longing but if one wants to hunt for an entry right away, you may find a good one by looking at the micro time frames (15-60 minute chart).
An example that is similar to one I discussed on DOGE recently would be to play the smaller time frame for an entry, but ALSO have longs in place near the $37312 area on the larger timeframe as well.
**Please use alerts and stop losses
NOT FINANCIAL ADVICE
At first glance when looking at the current price, we find ourselves hovering just above the level I have been waiting on and that is the .236 Fibonacci level of THE ALL TIME HIGH. That is very important to understand because that is what separates this from just being a quick swing trade. Instead, this is a trade that could be poised to smash all time highs and go well beyond. Buying at the .236, also known as the inverse of the .786, can be the trade of a lifetime when spotted right away in assets such as Bitcoin.
The daily candle just closed as of writing this and the price closed strongly. To begin the new day, look for a backtest of this .236 fib level at $37312 approximately. This will be an area where limit orders will be put in for longs. I would personally have a small long beginning well above the $37312, and ladder in more and bigger longs that go lower and eventually all the way to our rock bottom price point at the exact .236 fib.
Keep in mind for those who are new that it is not the least bit strange for the price to wick below our level briefly and still be bullish. However a candle close on the daily BELOW this .236 would put us back in a no trade zone. So for this reason we always use stop losses, but because we have a beautiful candle close above this level already, I would expect the price to give us an opportunity to wait on a daily candle close below the .236 before the need to close our position occurs. That is if the support truly fails.
A backtest of the level from where we currently are would be a near 5% dip. It is wise to wait on this backtest before longing but if one wants to hunt for an entry right away, you may find a good one by looking at the micro time frames (15-60 minute chart).
An example that is similar to one I discussed on DOGE recently would be to play the smaller time frame for an entry, but ALSO have longs in place near the $37312 area on the larger timeframe as well.
**Please use alerts and stop losses
NOT FINANCIAL ADVICE
