The Bitcoin price dropped again yesterday, forming a long wick, which shows that many buyers came in to push the price higher.
Right now is trading above the support horizontal line (around $41,000).
The price is now trading inside the area between around 39,500 and around 42,500 (see the green rectangle in the picture) which is acting as strong support, as I expected.
The price is still trading below the key moving averages, exactly below the 200-day MA (green moving average), below the 21-day MA (blue moving average) and below the 50-day MA (red moving average).
The daily RSI is still inside the oversold zone.
These drops are a buying opportunity, in my view, as the bitcoin fundamentals have not changed.
Instead, this is the best time to start buying and accumulating more Bitcoin.
The short term (daily timeframe of Bitcoin) still looks bearish.
However, the trend is still bullish in the long term (weekly and monthly timeframes), so I’m not worried.
It’s really important that the price goes back above the 200 daily SMA, as soon as possible.
The Crypto Fear & Greed Index is still in “Extreme Fear” mode.
Every time there is a drop, investors are scared.
However, this fear is not justified in my opinion.
These types of corrections are common in the crypto market.
The best time to invest in cryptos is when everyone else is scared.
And now it’s the time to invest, in my opinion.
The Bitcoin dominance is back above the 40% level.
However, if the bitcoin dominance is going to break and remain below that level, I expect a new altcoin season to start.
I’m already positioned for this scenario.
As I said, now is the time to remain invested, keep the copy open and add more if you can, or start the copy if you are new and wait for the massive run.
I still think that bitcoin will go over $100k by mid 2022.
Have a nice day, guys!
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2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)
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4. Start the copy (remember to COPY OPEN TRADES and set the lowest stop loss possible, to allow some movement)
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Let me know if you have any questions.
eToro Popular Investor