Has Bitcoin bottomed out? When can we enter to buy the dip?
First, let's look at the 4-hour chart below. Currently, the 4-hour structure is in a downward expansion pattern. We shorted from 105800 and closed our position at 92800 yesterday. Although we missed the rebound, the ETH, XRP, and SOL spots I bought yesterday also had a profit of ten points when I sold them last night.
Now we can observe BTC's 4-hour trend. Is each rebound's high point not breaking the previous round's high point? Is each round's low point lower than the last round's low point? What kind of pattern does this trend belong to? The answer is: downward expansion pattern.
In this kind of pattern, the rebound is a short position. What position should we short? First, draw a trend line yourself, short near the downtrend line, and then move the previous round's high point up by 2 points to set the stop-loss level. This method avoids getting stopped out by spikes.
For example: if the last round's high point is 106000, then we can place a short position near 104000 and set the stop-loss at 108000. Because if it breaks 106000 and reaches 108000, it indicates a trend change, a strong breakout, and not a false alarm! At that point, you need to stop loss. So how do we manage our positions? Generally, we open a 10x isolated position in layers. At 104000, you can start with a 0.6 position, and when you reach around 105800, you can add the remaining 0.4 position, making the total position 1 layer. Make sure to set your stop-loss and take-profit ratios correctly; after you enter, set stop-loss at 3-4 points, and take-profit can be set in the range of 4-5 points. Once you have set the stop-loss and take-profit after entering, you don't need to keep an eye on the market. This way of trading may earn you more than watching the market yourself because many people get scared when they gain a little profit and close their positions, only to reverse and get trapped. When trading, focus on trend trades. Once you have made a profit, you can use your entry position as the stop-loss level to ensure you have almost no major drawdown, at most just losing some fees. Then you can take a chance on the trend to maximize profits.
Now don't rush to buy the dip; wait for the second bottom signal to enter. Tonight at 20:00 Beijing time, Binance Square will live stream to teach you how to buy the dip.
