Bitcoin dips below $47K but one trader is eyeing 'solid risk/reward' for longing BTC now
Bitcoin dips below $47K only one trader is eyeing 'solid chance/reward' for longing BTC now
Short-term turn a profit opportunities are there, just so are concerns over a "panic" sell-off nevertheless absent from BTC price charts.
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Bitcoin (BTC) added to its losses on Dec. 29 with a fresh tumble briefly taking BTC/USD below $46,600.
RSI flashes "oversold"
Data from Cointelegraph Markets Pro and TradingView showed the pair giving upward ground prior to the Wall St. open up to increase its 48-60 minutes correction to 10.4%.
The latest move in a familiar design of behavior, the market showed that the range in which Bitcoin has acted in December remains very much in play.
Equally market participants resigned themselves to a lackluster stop to the yr, popular trader and analyst Scott Melker noticed a possible buying opportunity at current levels on short timeframes.
Bitcoin'south relative strength index (RSI), in addition to other bullish signals, had entered "oversold" territory during the dip in what is a archetype buy-in trigger.
"If you are trading pocket-size fourth dimension frames, there'due south very solid take a chance/advantage of punting longs here," he wrote in one of several tweets nearly the opportunity.
"RSI oversold, hourly about to make a balderdash div, at the range EQ, low conviction selling on minimal volume."
— The Wolf Of All Streets (@scottmelker) December 29, 2022$BTC
Beautiful bullish divergence with oversold RSI on the hourly nautical chart. Small fourth dimension frame, and then I look for the div to build to higher time frames. The iv-hour would be next.
Equally I said, dandy potential R/R for a trade here back to the 50Ks. pic.twitter.com/a6T0sPCG6X
BTC/USD subsequently bounced from the lows to return above $47,000.
Melker had previously defended the retracement from $52,000, arguing that "nothing had changed" overall for rangebound Bitcoin.
Brandt: Panic sell-off "still yet to happen"
Not anybody, nonetheless, was optimistic.
Related: 'Internet neutral' — Ascension Bitcoin exchange balances could be due to Huobi Chinese user cake
Peter Brandt, the veteran trader who earlier in the calendar week had warned of "faux breakouts" in thin-liquidity markets over the holidays, now eyed room for further downside.
Nonetheless yet to happen ... https://t.co/o4I4KuVMNf
— Peter Brandt (@PeterLBrandt) December 29, 2022
A phase of "panic capitulation" worse than early December appearing is nonetheless a topic of debate.
Retail investors, others argued, were likely not prone to mass selling at current levels, pointing to increases in small-scale-balance wallets and testify of stiff hodl beliefs throughout the year.
Source: https://cointelegraph.com/news/bitcoin-dips-below-47k-but-one-trader-is-eyeing-solid-risk-reward-for-longing-btc-now
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