Here's why I've bought more Bitcoin today.
1. FUD (Fear, Uncertainty, and Doubt)
I actually never trade on news events. People are selling in fear right now because China may ban Bitcoin exchanges. I usually do the opposite as the herd. If everyone is selling I'm buying. I don't really care if the rumors are true or not. Even if China bans Bitcoin exchanges, Bitcoin is still an amazing alternative to the failing fiat money system. I see Bitcoin as Gold 2.0, a safe haven when fiat currencies fail due to inflation caused by insane money printing. The FUD from China is a buy opportunity to be thankful for in my opinion. Although I could be wrong of course. Time will tell... :)
Let's have a look at the Bitcoin chart (Bitstamp daily)
2. RSI
The RSI has fallen below the 30 level today which indicates Bitcoin is oversold. The last time this happened was on July 16 when Bitcoin made a low of $1830. The price more than doubled hereafter.
3. Bollinger Bands
Look how far the price is trading below the lower Bollinger Band. The current price is $3090 while the lower Band is at $3412. It never means we can't go lower, but historically the price has always moved back inside the 2 bands.
4. $3000 is a resistance level
I think $3000 USD is a physical resistance level. It was a top on June 11 and July 20 before it was broken on August 5.
5. 61.8% Fibonacci Retracement level at $3041
Bitcoin is currently trading around the 61.8% Fibonacci Retracement level between the low of July 16th and the top of September 2nd.
I think $3000 is a key level to keep an eye on. The "perfect buy" in my opinion :)
Disclaimer: No trading advice. I just gave you my reasons why I've bought...