Each trader has his strategy when it comes to trading with Bitcoin (BTC). Moving averages, relative strength index and Fibonacci are just some of the observed patterns.
However, for a long-term investor, a strategy seems to have worked out well.
Lucid, a well-known Twitter trader, taught the pattern he used to buy $ 30,000 BTC in January.
More than 60% in one month
After the nearly three-day correction exhibited by BTC, Lucid published on Twitter the graphic pattern he usually observes.
On Wednesday (24), he displayed the following chart with his notes:
The trader, famous on Twitter, explains that he managed to buy BTC at $ 30,000 during the hike due to this pattern. He then highlights the points he observed.
The first step is to observe a large correction candle on the daily chart. So, the next step is to wait for a pattern to form.
This pattern is initiated by another large candle, but this one of appreciation. Lucid explains that the minimum and maximum of this candle are used to create a price range.
He points out that the stop loss should be used just below the minimum of the candle. Smaller candles will be moved within the price range, representing an accumulation of investors.
They will try to destabilize
However, as Lucid shows in point 4, it is possible that prices “leak” the minimum of the large correction candle.
The trader explains that this move is used by experienced investors to settle long positions. Anyway, it is a great entry point for those who want to buy during the high season.
It is then that the price starts the way for a surge. Lucid advises the most cautious to wait for a new test of the maximum of the price range.
That is, if the maximum of the candle is R $ 200,000, it is interesting to see if prices will return to the range. If they only enter temporarily, it's time to buy.
This is because, after testing the created price range a few times, the Bitcoin price will explode until the next targets.
Finally, responding to a follower, Lucid believes the BTC's next target is at $ 70,000. When quoted in reais, this is around R $ 380 thousand.
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