Bitcoin Market: Scaling into a dip buy but keeping ammo for capitulation.
cryptocurrency·@tradealert·
0.000 HBDBitcoin Market: Scaling into a dip buy but keeping ammo for capitulation.
Hi traders, Bitcoin looks ripe for some capitulation so here's a quick post to remind you of my strategy.  # Bitcoin. * I've started to scale into a dip-buy, my first position is around $5800 (starter size to buy some rekt altcoin) but I am looking at some real ugly capitulation to engage more of my trading capital. * By capitulation I mean some high volume daily candle similar to the one which formed when we plunged from 17k to 6k:  * High volume capitulations are great because they usually bounce but they're hard to catch so my plan is to put some low buy orders on the spot market (I almost never trade with leverage) and keep some fiat to buy on the spot in case my orders don't get filled. Where would I place those orders? * Well, this is the chart from my [**last market update**](https://steemit.com/cryptocurrency/@tradealert/bitcoin-bounce-looks-exhausted) in which I predicted that we would dump to $5700 (we were trading at around $6600 then and we're currently trading at $5800) to that thin value node, grind there for a few days but eventually chew down through it and capitulate down to that "fat" value node around $4500:  * As you can see there is a clear dip in volume support (red/green indicator on the right hand side of the image) below the $5700 value node, this means that if the price is given enough downwards momentum it should zip right through this area to hit the lower value node where the volume support is much larger.  # Strategy. My strategy is to keep an eye on how the price will behave around $5700: * if we start bouncing from there *with volume* I might consider adding to my starter position; * if we start grinding down and the volume keep shrinking then I'll keep my fiat for the real capitulation to around $5000- 4400 where I'll probably scoop up a few Bitcoins and wait for a bounce; * *if* a bounce doesn't materialize at that price then I'll have to reconsider and I'll keep you updated then. Are you enjoying this bear trend? Trade safe ya'll
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