Yesterday I opened long at $38300 according to strong divergence signal. I was scared about FOMC decisions, but it was quite good for bulls on all stocks and cryptomarkets. BTC broke the countertrend line from the previous analysis and almost reached $40k. I saw a lot of hate and bearish mood when the price was $37500 and I told about long, as a result I suppose that a lot of traders did not open the long trades. Now I want to give you an idea where you can execute long position for the Bitcoin in case if you missed the buying opportunity.
As you know I never advice to buy assets on the pumps, need wait for correction. The classical approach here is to place limit orders at 0.38, 0.5 and 0.61 Fibonacci retracement levels and wait for it’s filling. If you are risk averse this approach is for you! But the on the strong uptrend the Bitcoin usually doesn’t show the significant corrections and we have to use another one approach to buy the dip. I study one very interesting book about trading and the possible way to enter the market on the uptrend is to wait for the bullish crossover on the Stochastic RSI. We can see that not it has the oversold value, that’s why the potential crossover is going to be an extremely bullish sign. I consider now the 1h timeframe. You can choose one of these two methods to enter position.