Bitcoin dips below $47K but one trader is eyeing ‘solid risk/reward’ for longing BTC now

Bitcoin
(BTC)
added
to
its
losses
on
Dec.
29
with
a
fresh
tumble
briefly
taking
BTC/USD
below
$46,600.


BTC/USD
1-hour
candle
chart
(Bitstamp).
Source:
TradingView

RSI
flashes
“oversold”

Data
from

Cointelegraph
Markets
Pro

and

TradingView

showed
the
pair
giving
up
ground
prior
to
the
Wall
St.
open
to
increase
its
48-hour
correction
to
10.4%.

The
latest
move
in
a
familiar
pattern
of
behavior,
the
market
showed
that
the
range
in
which
Bitcoin
has
acted
in
December
remains
very
much
in
play. 

As
market
participants
resigned
themselves
to
a
lackluster
end
to
the
year,
popular
trader
and
analyst
Scott
Melker
noticed
a
possible
buying
opportunity
at
current
levels
on
short
timeframes.

Bitcoin’s
relative
strength
index
(RSI),
in
addition
to
other
bullish
signals,
had
entered
“oversold”
territory
during
the
dip
in
what
is
a

classic
buy-in
trigger
.

“If
you
are
trading
small
time
frames,
there’s
very
solid
risk/reward
of
punting
longs
here,”
he
wrote
in
one
of
several
tweets
about
the
opportunity.

“RSI
oversold,
hourly
about
to
make
a
bull
div,
at
the
range
EQ,
low
conviction
selling
on
minimal
volume.”

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
everyone,
however,
was
optimistic.



Related: ‘Net
neutral’

Rising
Bitcoin
exchange
balances
could
be
due
to
Huobi
Chinese
user
block

Peter
Brandt,
the
veteran
trader
who
earlier
in
the
week
had
warned
of
“fake
breakouts”
in
thin-liquidity
markets
over
the
holidays,
now
eyed
room
for
further
downside.

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-balance
wallets

and
evidence
of

strong
hodl
behavior

throughout
the
year.

read original article here