Just opened the chart for Bitcoin a few minutes ago. Price has dipped to 2300 at the time of this entry. Looks like opportunity. One trader had said that when there is blood in the streets there is opportunity. I believe what the trader meant by this is that when people are running scared and full of fear they are dumping and driving the price down which makes it opportunity time.
the price is sitting on the 2300 support line. I just looked again and it has crossed below to 2260 now. Panic in the streets. What is happening is the fearful and emotional trader has dumped holdings and freaked out when he saw some profit takers taking profits. They sat and watched with the sell ready to go. When the price stabilized for a few hours or minutes they held on thinking it would reverse. Making quick knee jerk responses in the past, the emotional trader decides to hold on in case of the reversal. too much blood pouring and other fearful traders begin to dump then finally Mr. Emotional dumps his for a loss, swearing to never invest again.
What we see now is opportunity for Mr. Successful trader to jump in an get some decent entry points and load up. 2300 held support for a long time. It was actually the resistance before that good run in June. If it continues to drop the next support level will be 2106. Now, if it breaks through that then we have to adjust our Fibonacci to determine the next set of support levels. The Stochastic chart is showing a a bearish trend but as I said earlier, this appears to be traders pulling profits and good for them. That is what we do and we should always pick some fruit along the way. Greedy traders who hold on for the home run end up missing earning opportunities along the way. Alwasy take profits when its up and buy when there is blood in the streets.
All the BEST!
