Is it Time to Buy Bitcoin? Full Technical Analysis Report

Since December 17th of 2017 the price of Bitcoin is down over 51%, in just 95 days.

This vertical move lower is nothing new to seasoned Bitcoin investors, having stomached many sharp down moves in the cryptocurrency’s history.

New traders and investors looking to get involved are now wondering, is it finally time to buy Bitcoin?


Is it Time to Buy Bitcoin Now? – Technical Analysis

Momentum is starting to bottom out and turn positive.  Technical analysis indicators are starting to show a slow down of the recent sell off, which could mean it may be time to buy Bitcoin soon along with other cryptocurrencies.

Looking at a price action chart below, we can still see that Bitcoin is in a downward trend channel.  This indicates more selling may come in the near future however. The latest wave of selling in early March was on an increase in volume, which is a tell-tale sign that selling may not have capitulated yet.

As long as the price continues to hold below the “flag pattern” in technical analysis, we are watching from the sidelines for a low risk opportunity to buy Bitcoin.

There is a major support zone below, between $6,200 and $7,000 USD.  If you want to learn more about using support and resistance zones to trade, click here.

Buy Bitcoin - Technical Analysis

Buy Bitcoin – Technical Analysis


Is It Time to Buy Bitcoin Now? – Moving Averages Holding as Support Level

The 200 day moving average is a strong support level, just above $9,000.

This level is also a strong psychological support as it is a nice even number.

Traders are waiting to see if the $9,000 level holds and watching to see an increase of volume as prices move up from this zone. If we break below, prices could slide much lower to the $6,200 support zone below.

Overhead, the $12,000 USD level has been very strong resistance offered by the prior high in late March and the 100 day moving average just above.

Time to Buy Bitcoin - Moving Averages

Time to Buy Bitcoin – Moving Averages


Is it Time to Buy Bitcoin? Volume Support for Long Entry

While we think it is a bit early still to look to buy Bitcoin, more aggressive buyers can take note of the setup below.

There is singificant support by the volume profile levels between $8,600 and $9,000.

If you want to learn to trade using volume profiles read this article by clicking here.

If you do plan to buy Bitcoin near the support level below, it would be wise to manage your risk by placing a stop loss order at $8,258.60 or below.

Curios on how to setup a risk management strategy? Click here to read about creating your very own money management strategy.

Want to learn how to use a stop loss order to protect your trades and capital? Click here.


Time to Buy Bitcoin - Trade Setup

Time to Buy Bitcoin – Trade Setup


Is It Time to Buy Bitcoin Now? Conclusion

The truth is, there is no right time to buy anything.  Trading is all about finding a low risk and high probability opportunity and taking a shot.

One way to ensure you are a successful trader in the long term is to make sure you are implementing a strict money management strategy. You should always be thinking about your risk first and foremost.

If you want to learn how to find high probability trade opportunities and to manage your risk like a professional trader check out one of our subscription packages and find out the benefit of trading stress free like the pros.

Overall however, we are starting to see a shift in Bitcoin and we are coming up to a very good opportunity in cryptocurrencies in the next few weeks.


Good luck and good trading.


The information contained in this post is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.