Trading Bitcoin: Time to Buy the Dip?

The Sky is Falling, What Now?

Bitcoin has fallen over 10% overnight as price is now trading at $7k. Price action has been incredibly volatile as the market continues to move. On the daily chart above, Bitcoin has somewhat found support at the fibonacci line.

Daily

Bitcoin broke below support yesterday when we reached a red 9. Overnight, price fell all the way to $6.8k. For now, we are in a recycle period waiting for price to consolidate. Bitcoin seems very oversold.

4 Hour

Bitcoin has also reached a red 9 on the 4 hour chart above. If we are looking to catch a falling knife, it will likely occur on a red 9 candle. Being said, catching a falling knife is a very risky trade and it must be executed with a tight stop loss.

Conclusion

Bitcoin has temporarily held support at $6.8k. Bitcoin has reached in a red 9 on the 4 hour chart which may indicate a temporary bottom. Tune into our show later today to see the in-depth analysis.

Disclaimer: The author of the article hodls Bitcoin.