Before entering a long I need to see the price find support above the bear trend (red line). As I am typing this a dragonfly is forming on top of the .
If that closes then it could provide an opportunity to enter a long. The stop loss would be set at $7,719 and that would be a favorable risk:reward ratio. However, I want to make sure that support holds over the weekend before looking to enter myself.
Historically the price can have trouble finding support on weekends when the is lower. This is such a crucial spot for Bitcoin that it makes sense to wait on the sideline for a few more days.
My trading style is not about getting the best possible price, or trying to pick the exact bottom. Instead I focus on finding trades with the lowest amount of risk. Entering a position right now is too risky for my appetite.
However, if we can maintain support above the bear trend over the weekend then I will be ready to feast!
Happy trading and remember that following is free!