Resistance: 61.8% at $3,920
Support: 31.8% at 3,620
Stop: $3,600 or 2%
Trade Setup: I’m still long as long as we trade in this consolidation zone between Support and Resistance. If BTC breaks above resistance I’d be looking to reinforce positions possibly. Likewise, if I get stopped out at $3,600 I’ll be watching the market closely for new trade setups.
Long-term Buy/Hold Strategy: The Parabolic SAR Indicator on the Daily and Weekly still shows negative downtrend with no early signs of reversal. This is a lagging indicator so until prices rebound and confirm supports above resistances there is no clear buy setup.
Medium-term Buy/Hold Strategy: It’s always been a good strategy in any asset-class to buy around the 200 Week MA as a buy/hold. Crypto’s obviously don’t have the same kind of history as the stock market but in Bitcoin’s 10-year history buy on the severe dips has proven profitable. You will need to consider the risk yourself, but it’s our position that allocating a small % of your overall portfolio to Bitcoin will be a profitable investment in the long-term.