Let’s take a look at the charts and see what bitcoin price is up to at present. It’s clear that bitcoin is currently in a short term bearish phase now. The parabolic bull run of the past few months is over and we are now experiencing the retrace. Are you ready to buy the dip? And where will this retrace find support?

If we look at the daily chart, we can see that 10 and 20 Mas (moving averages) are rolling over to the downside. Previous break of the 10 day MA found support at the 20 day MA, but this time the 20 day MA is also broken. So the next possible line of support might be the 50 day MA which is currently at $16.5k (SMA) or $16.7k (EMA). I would consider placing a buy order around this range and wait for price to come to you.

Try not to chase price or get impatient or emotional when trading. It’s like being on the sports or battle field. You can’t lose composure or become irrational under the pressure of possible loss. When everything is at risk, we need to remember our training, look at the facts and let the charts and price action tell us how to react.

Also if we look at the RSI on the daily we can see that it has just now dropped below the middle or 50 mark. Anything below 50 indicates that we have entered bearish territory and the direction is to the downside. The daily RSI has not been below 50 since around 7 October, three months ago, suggesting that the inevitable retrace is here.

Now let’s look at the 4 hour chart, where we can see that two days ago, when the retrace started, price fell to and found support at the 200 SMA and bounced back up. Price then hit the 100 SMA as resistance and has again dropped down to the 200 SMA. As I write this price has just broken the 200 EMA with a touch of a wick, but is now finding support there once more, with a price of $17.7k. A bounce back up in in progress and we will now need to watch and observe. This 200 MA is doing very well holding price right now but looks like it’s failing as support.

The RSI is not yet in oversold territory below the 30 mark, as it was the last time price dropped to the same level at the 200 MA, 48 hours ago. Volume is back so traders are getting involved and we will have to see if the bulls can take back control of the markets, as they have done most of this year.

Nothing is certain though and this could be the support price above the 200 MA from where price climbs once more. Or we could still see further downside toward my original target of $16.5k. I will wait patiently for further downside movement in order to catch some cheaper bitcoin and stack more sats. Price is making lower lows so look like it’s on the way downward.

This is not investment advice and just my opinion, of course. With such uncertainty and so many conflicting indications, it’s better to simply observe and react to price, as opposed to attempting to predict anything.