If you are a trader or even a long term player, you may be thinking about buying dips in Bitcoin .
Looking at the four-hour bar chart of XBTUSD on BitMEX, we see three support points that interest us. The first is a horizontal support block between 8144 and 8230. There is also diagonal support at that zone from a set of Fib speed resistance fan lines. If that zone holds, we think bitcoin could turn around and take the critical resistance zone at 8550.
Below that, there is support at 8k. 8k would be a juicy buy zone for long term investors.
Bottom Line: We are bullish , so we are open to the idea of entering small sized long positions on dips. It is essential to keep positions size reasonable in case we are wrong. If bitcoin takes out 8550, we could see taking more significant positions.
DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.